Philippine Business Bank Continues to Break Record, Net Income Ending at P1.8 Billion in September 2024

Philippine Business Bank (PBB) reported an interest income of P7,830.9 million in the first nine months of 2024, a 16.1% increase YoY. Core income reached P2,398.0 million and profit before tax was at P2,250.0 million. Net income grew 57.1% to P1,799.7 million from P1,145.6 million.

Total loans and receivables reached P120.6 billion as of 9M24, up 13.1% YoY. Total resources stood at P161.3 billion as of end-September 2024. On the funding side, deposit liabilities were at P131.9 billion as of 9M2024.

Shareholders’ equity was at P19.7 billion, equivalent to a book value per share of P23.31 net of preferred shares. Annualized returns on assets and equity improved to 1.49% and 12.18%. The Bank’s capital adequacy ratio was 12.92% and minimum liquidity ratio at 24.55% at the end of the first half of 2024, above the adjusted statutory requirement of 10.0% and 20.0%, respectively.

“The Bank’s financials showed remarkable performance and growth in the first nine-months of 2024 earning P1.8 billion net income, an accomplishment that took PBB the full year to reach in 2023. This growth was driven by the ability to capitalize on the high-interest rate environment, effective cost management, and a 50% growth of fee-based income. The Bank also generated trading gains of P402.0 million further boosting net income despite economic volatility.

Despite the challenges of acquiring low-cost funding in an elevated interest rate environment, the Bank successfully increased its net interest income. This growth was driven by a 16.1% increase in interest income, attributed to the Bank's strategic focus on expanding its high-yielding consumer business, and the continued support of the SME sector. This demonstrates the Bank’s resilience and adaptability, enabling it to deliver strong financial performance amidst high interest rate pressures and ensure continued profitability and stable growth.

As PBB moves into the fourth quarter of 2024, it will remain well-positioned for sustained growth and profitability. It remains steadfast in its commitment to its clients by offering products that cater to their needs. These will ensure that the Bank is ready to face future challenges while continuing to deliver value to its stakeholders,” said Rolando Avante, vice chairman, president, and CEO of Philippine Business Bank.

Philippine Business Bank (PBB) is the financial services arm of the Yao Group of Companies. The Bank aims to become the bank of choice of the underserved SME market segment. This focus on the SME market is driven by the size and potential of this particular market. According to recent data from the Department of Trade and Industry, SMEs account for 99.5 percent of total registered enterprises. The Bank believes that the SME segment is the major source of entrepreneurship and economic dynamism which provide trade, manufacturing, and services and help contribute to community and local development. The SME segment is underserved with most financial institutions focusing on the banking requirements of large corporations. The Bank has a total of 158 branches nationwide.