Philippine Business Bank Increased its Net Income by 39.1% to P1.824B, Assets Increased by 14.8% to P154.4B in 2023

Philippine Business Bank (PBB) reported net interest income of P6,421.4 million in 2023, up 15.8% from P5,547.4 million. Core income totaled P3,105.0 million. Pre-tax pre-provision profit was P3,392.8 million, representing a 26.5% rise year over year. Profit before taxes increased by 25.6% to P2,339.4 million in 2023. Net income was P1,824.0 million, up 39.1% year-on-year.

As of December 2023, total resources stood at P154.4 billion, representing a 14.8% increase. Total net loans and receivables amounted to P117.6 billion at the end of December 2023, up from P103.5 billion at the same period the previous year, representing a 13.5% YoY rise. Deposit liabilities were P126.7 billion as of FY2023, up from P114.5 billion in FY2022. Low-cost deposits ("CASA") totaled P68.3 billion, with time deposits ("TD") reaching P58.4 billion.
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Shareholders' equity stood at P18.0 billion, with a book value per share of P21.25 net of preferred shares. Asset and equity returns increased to 1.18% and 10.13%, respectively, while net income increased. The net interest margin ("NIM") is 4.63%, 30 basis points higher than in FY 2022 (4.33%). In December 2023, the bank's capital adequacy ratio ("CAR") was 13.1% and its minimum liquidity ratio ("MLR") was 25.8%, both of which were above the statutory requirements of 10.0% and 20.0%. Over the last five years, the bank's net book value per share, net of preferred shares, has increased by 5.2% per year, from P13.12 in 2018.

​“PBB’s outstanding performance in 2023 was driven by the Bank’s asset expansion, improved interest rate margins, and lower cost-to-income ratio. The Bank’s performance despite the stiff competition in the industry is indicative of PBB’s expansion as a full-service financial institution. Maintaining its core income, generating trading gains and fee income, and growing its PTPP and net income is a testament to PBB’s resiliency and discipline. The Bank maintains its NPLs within reasonable bounds and still delivers an attractive NIM at 4.63%. 

On the balance sheet side, PBB’s loan portfolio grew 13.5% YoY as credit activity continued to gain momentum with the continued economic recovery and the resulting uptick in market demand for financing. Deposit liabilities also increased to P126.7 billion from P114.5 billion while maintaining a CASA:TD ratio of 54:46.

The Bank is consistently upgrading capabilities for the future. Senior management believes that the Bank’s approach of further strengthening its dominant position in the SME market, and sustaining its growth momentum will help establish and position PBB towards its ultimate goal of becoming a major player in the Philippine financial services sector,” said Cynthia Almirez, Chief Operating Officer of Philippine Business Bank.