Philippine Business Bank Delivers Strong 1Q 2025 Results with a YoY Net Income Growth of 15.4%

​Philippine Business Bank (PBB) reported an interest income of P2,877.1 million in the first three months of 2025, a 14.2% increase YoY. Net interest income also grew 12.4% to P1,825.7 million. Core income reached P895.3 million, up 14.4% and pre tax pre-provision profit rose by 24.5% to P908.7 million. Net income grew 15.4% to P590.0 million from P511.5 million.

Total loans and receivables reached P122.8 billion as of 1Q25, up P10.7 billion YoY. Total resources stood at P160.8 billion as of end-March 2025. On the funding side, deposit liabilities were at P131.0 billion as of 1Q2025.
 
Shareholders’ equity was at P20.1 billion, equivalent to a book value per share of P23.77 net of preferred shares. Annualized returns on assets and equity improved to 1.47% and 11.75%. The Bank’s capital adequacy ratio was 13.0% and minimum liquidity ratio at 23.8% at the end of the first quarter of 2025, above the adjusted statutory requirement of 10.0% and 20.0%, respectively.

"Philippine Business Bank started 2025 strong, recording a net income YoY growth of 15.4% earning P590 million in the first quarter of 2025. Amidst the challenging business climate driven by the global economic tensions, the Bank maintained healthy interest margins. Net interest margin (NIM) stood at 4.64% as of March 2025, a 16 basis points increase from 4.48% in the same period last year. The Bank’s marketing efforts continued to focus on high-quality accounts, particularly existing clients and borrowers with a track record of sustainable earnings, and our rapidly growing teacher’s loans business. Strengthened collection policies, restructuring programs, and the usual focus on deepening relationships with our SME clients continue to be our primary objectives.
 
Taking a proactive risk mitigation stance, PBB accelerated its provisioning strategy by setting aside P175 million in loan loss provisions in the first quarter of 2025, more than triple the P50 million recorded in the same period last year. Even with the accelerated provisioning, PBB still generated higher net income YoY, had provisions remained at 2024 levels, net income would have grown by 34%.
 
PBB remains committed to its long-term strategic direction, continuously strengthening its services, investing in new technology and capabilities, and leveraging its extensive network to better serve clients and drive growth,” said Rolando Avante, vice chairman, president, and CEO of 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.