Philippine Business Bank Net Income Grew to P1.9 Billion Amid Blobal Uncertainties and Domestic Headwinds

Philippine Business Bank (PSE: PBB) reported interest income of P11.4 billion in 2025, up P807.5 million from P10.6 billion in 2024. Net interest income reached P7.3 billion, core income was at P3.5 billion, and profit before tax rose to P2.5 billion in 2025. Net income ended at P1.9 billion, P114.2 million higher YoY.

Total resources stood at P168.8 billion as of December 2025. Total net loans and receivables stood at P127.7 billion as of end-Dec 2025. On the funding side, deposit liabilities were P134.9 billion as of YE2025. Low-cost deposits (“CASA”) ended at P64.4 billion, while time deposits (“TD”) reached P70.6 billion.

Shareholders’ equity stood at P21.2 billion, equivalent to a book value per share of P25.10, net of preferred shares. Over the past five years, book value per share grew at a compounded annual growth rate of 9.1%, reflecting the Bank’s continued ability to build shareholder value over the long term. Returns on assets and equity ended at 1.12% and 8.96%, owing to net income growth. Net interest margin (“NIM”) improved to 4.5%, from 4.3% last year, demonstrating the Bank’s ability to sustain profitability through better margin management. The Bank’s capital adequacy ratio (“CAR”) was 13.0% and minimum liquidity ratio (“MLR”) at 24.1% in December 2025, both above the statutory requirement of 10.0% and 20.0%, respectively.

“PBB delivered a solid performance in 2025, closing the year with net income of P1.9 billion. This was achieved despite a challenging operating environment marked by weaker business sentiment, domestic issues that weighed on market confidence, and broader global uncertainties. With this backdrop, the Bank further enhanced its focus on credit and asset quality, deliberately directing efforts more towards margin expansion rather than asset-base expansion. In particular, through better margin management, deeper client engagement, and a more deliberate focus on profitable business generation. As a result, the Bank was able to increase net interest income by P587 million despite modest balance sheet growth. Fee-based income also provided additional support to earnings, reflecting the Bank’s continued ability to capture value from its client relationships and lending activities. PBB’s non-performing loans ratio also improved to 4.2% from 2024’s 5.7%, underscoring the Bank’s prudent risk management and focus on asset quality.

In a market largely shaped by bigger players, PBB remained anchored on its core strength as a relationship-driven bank, staying close to its clients, understanding their needs, and providing a more hands-on approach to service.

Looking ahead, PBB expects the operating environment to remain challenging in the coming months, as elevated oil price risks, global uncertainties, and still-fragile business sentiment continue to weigh on economic activity. These conditions could place added pressure on borrowers and make competition across the banking sector even tighter. Even so, the Bank remains confident in the strength of the client relationships it has built over the years and will continue to support both existing and prospective clients through a more responsive and hands-on approach to service, while further strengthening the tools, discipline, and capabilities needed to navigate the months ahead.

PBB will likewise continue to prioritize profitability over balance sheet growth through a three pronged strategy of strengthening client relationship depth and quality, enhancing operational capabilities and efficiency, and selectively growing its higher-margin business in chosen consumer loan segments. This strategy is expected to position the Bank for sustainable growth and profitability in the periods ahead. PBB is grateful for the continued trust and support of its clients, shareholders, Board of Directors, and employees, and looks forward to working hand in hand with them in the years ahead,” said Rolando Avante, vice chairman, president, and CEO of Philippine Business Bank.
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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.