Philippine Business Bank net income reaches P1,065.4 million; pre-tax pre-provision profit is up 11.3% to P1,760.8 million

​Philippine Business Bank (PSE: PBB) reported an interest income increased of 12.5% from P5,184.1 million as of June 2024 to P5,832.3 million this year. The Bank’s net interest income expanded by 10.3% to P3,693.2 million versus the P3,347.6 million figure of the previous year. Core income increased to P1,810.1 million. Pre-tax pre-provision profit reported an 11.3% growth from P1,582.2 million in the first six months of 2024 to P1,760.8 million this year. Profit before tax reached P1,410.8 million while net income ended at P1,065.4 million for the first six months of 2025.

​Total loans and receivables ended at P119.4 billion as of June 2025. Total resources increased by P7.8 billion, reaching P162.2 billion. On the funding side, the Bank’s deposit liabilities expanded by P7.1 billion ending the first six months of 2025 at P133.5 billion.

Shareholders’ equity was at P20.2 billion, equivalent to a book value per share of P23.86 net of preferred shares. Annualized returns on average assets and average equity ended at 1.29% and 10.78%. Net interest margin improved by 16 bps to 4.68%.The Bank’s capital adequacy ratio was 12.93% and minimum liquidity ratio at 24.51% at the end of the first half of 2025, above the statutory requirement of 10.0% and 20.0%, respectively.

“The Bank’s P1,065.4 million net income was achieved with the continued expansion of the Bank’s core business. The interest differential business showed robust profitability as the Bank continued to strengthen client relationships and maintain a healthy interest margin amidst intensify industry competition.

In the first half of 2025, PBB took a more aggressive approach to provisioning and actively managed potential risks arising from the volatile economic environment. Loan loss provisions reached P350 million in the first half of 2025, P150 million higher versus the same period last year. As a result, the Bank’s NPL cover ended at 104%. Had PBB maintained provisioning levels similar to June 2024, net income for the first half of 2025 would have ended at approximately P1,252.9 million, or a 17.6% increase YoY. This underscores the Bank’s commitment to maintaining good asset quality and ensuring adequate coverage to address potential credit risk.

The Bank’s focus on serving the SME market, while growing core income and maintaining asset quality, remains to be PBB’s core strategy. The Bank will also continue to optimize its deposit mix to support long-term growth. The rest of 2025 will likely show better earnings for PBB compared to 2024. Throughout the last 28 years, we have been steadfast in our dedication to serving our clients. In the coming years, we will continue to explore opportunities in consumer finance and corporate lending while we keep our focus on the SME market,” said Roland 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.