Makati—(PHStocks)—Philippine Bank of Communications (PBCom, PSE: PBC) reported a consolidated third quarter 2016 net income of PhP131.2 million, bringing the nine months’ net income to PhP189.1 million purely from core businesses.
Net interest income for the three months ending September 30, 2016 improved to PhP658.8 Million, ahead by 17.3% as compared to the same period in 2015. The improvement is on the back of higher revenues from its investment and loan portfolios. Non-interest income growth is driven by higher FX gains and fee income. Operating expenses in third quarter 2016, without credit cost, dropped 7.1% or PhP51.8 million, better compared to its corresponding period in 2015.
Year-to-date net interest income registered a 9.9% year-on-year growth to end at PhP1.88 billion as lending and deposit taking activities continued their expansion. Non-interest income, net of the fair value gain of PhP378.6 million booked last year, grew to PhP796.4 million with trading and FX gains up by PhP81.3 million or 350.4% from the gains registered in nine months in 2015. Operating expenses have decreased by PhP54.3 million despite expanding volumes in the bank’s core business activities.
The bank’s subsidiaries have likewise demonstrated strong growth in their core business with net interest income and non-interest income up by 15.9% as of September 2016.
Total assets reached PhP84.52 billion led by the growth in loans and receivables of PhP5.67 billion. Total liabilities stood at PhP74.03 billion. Deposit and deposit substitute rose by PhP6.4 billion to end at PhP71.18 billion with low cost deposit to total deposit ratio improving to 32.4%. Capital remained strong at PhP10.49 billion. The scheduled capital infusion by PG Holdings Inc. was earlier advanced to June 29, 2016 as a commitment to ensure the bank is well capitalized for its planned growth strategies.
PBCOM’s effort in improving its quality of earnings and balance sheet has resulted to consistent gains over the three quarters of 2016.