Provisioning tempers earnings growth:
- Interest income increased by 14.0% Year-over-Year (YoY) to PhP3,733.3 million in the 1H of 2020
- Net interest income grew by 43.6% to PhP2,797.9 million
- Core income1 reached PhP1,372.3 million, a 100.3% increase YoY
- Trading income rose to PhP261.9 million, up 24.2% YoY
- Pre-tax pre-provision profit (PTPP2) ended at PhP1,634.1 million from PhP895.8 million in 2019, up 82.4% YoY
- Profit before tax expanded to PhP1,084.1 million, up 45.4% YoY
- Net income grew to PhP794.9 million, a 37.3% growth
Balance sheet and portfolio management continue to be the primary focus:
- Total resources stood at PhP114.8 billion, up 14.3% versus June 2019
- Loans and other receivables at PhP84.3 billion as of June 2020
- Total deposits increased by 12.7% to PhP95.1 billion
- Total equity grew by PhP2.0 billion to PhP14.0 billion, a 16.5% increase YoY
Caloocan City, Philippines – Philippine Business Bank (PSE: PBB) reported a net income of PhP794.9 million in the first half of 2020, up 37.3% versus PhP578.9 million in the same period last year. Interest income expanded to PhP3,733.3 million from PhP3,274.3 million in 2019, up 14.0%. Core income grew to PhP1,372.3 million from ₱685.0 million, a 100.3% increase YoY. Pre-tax pre-provision profit rose to PhP1,634.1 million, up 82.4%. Profit before tax also increased by 45.4% to PhP1,084.1 million versus PhP745.8 million in 2019.
Total loans and receivables grew to PhP84.3 billion as of June 2020. Total resources reached PhP114.8 billion in 2020 from PhP100.5 billion in 2019, a 14.3% growth YoY. On the funding side, deposit liabilities increased to PhP95.1 billion at the end of June 2020. Low-cost funds grew 15.1%, while time deposits reached PhP54.3 billion.
Shareholders’ equity was at PhP14.0 billion, equivalent to a book value per share of PhP20.85 net of preferred shares. Net interest margin also improved to 5.04% in 1H 2020 against last year’s 4.11%, a 93 basis point increase. Return on average assets stood at 1.39% while return on average equity was at 11.81%. Book value per share grew 11.6% over the last five years.
Roland Avante, vice chairman, president, and CEO of Philippine Business Bank adds, “As a result of a thorough portfolio management and review processes of the Bank, PBB deemed it prudent to provide PhP550.0 million in loan loss reserves for the first half of 2020, more than triple against the PhP150.0 million in the same period last year. Even as market conditions continue to be challenging, our good balance sheet position allowed us to deliver robust core income and PTPP numbers. PBB understands the critical role that the banking industry plays in our economy. Providing liquidity to our SME partner-clients via well-structured financing is a key driver in jumpstarting the economy. PBB remains committed to being a catalyst in the nation’s economic development as the bank of choice of the SMEs as the Bank understands the opportunities present in some business sectors despite the COVID-19. We continue to appreciate the support of the BSP, the trust of our clients, and the commitment of our employees as we face this pandemic.”