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Philippine Business Bank core profit up 51%
MANILA, Philippines — Philippine Business Bank (PBB) reported a core income of P673.7 million in the nine months to September this year, rising 50.6 percent from P447.3 million in the same period last year.
In a statement, PBB said net interest income went up 19 percent to P2.2 billion in the third quarter from P1.8 billion in the same period last year as it continues to benefit from the streamlined account management processes.
Loans and other receivables grew 37.4 percent ending the quarter at P65.1 billion. Consequently, interest income from loans and other receivables increased 29.8 percent to P2.541 billion in nine months this year from P1.958 billion in 2016.
The bank’s total resources likewise increased by P14.6 billion, reaching P80.2 billion for the third quarter of 2017.
“Our loan portfolio expanded over 37 percent to P65 billion while our deposits are up almost 24 percent to P67 billion, and our total resources grew over 22 percent to P80 billion. As a result, all of PBB’s core brick-and-mortar income sources such as net interest income, service fees, and miscellaneous income expanded versus the same period last year.”
However, due to the lack of trading opportunities this year brought about by the pressure on interest rates to go up, PBB said it felt it was prudent to limit trading activities this year. Trading gains were at P16.7 million, lower by almost P270 million year-on-year.
Also, it said their loan loss provisioning increased 195.2 percent ending September 2017 at P177.1 million in line with the changing regulatory requirements and the implementation of PFRS9. The bank also incurred expenses of about P76.1 million comprised of agri-agra penalties from 2014 to 2016 and other one-time expenses.
“These are the reasons why net income was lower by 200 million,” said Roland Avante, PBB president and CEO.
Source: http://www.philstar.com/business/2017/11/03/1754972/philippine-business-bank-core-profit-51