Philippine Bank of Communications said Monday it posted a record net income of P1.57 billion in 2021, up 34.6 percent year-on-year, on the back of improved performance of core businesses and normalized provision for credit losses.
PBCom said in a disclosure to the stock exchange the 2021 net profit was the highest since the entry of the Lucio Co Group in 2014. The figure translated into a return on equity of 11.78 percent in 2021, up from 9.79 percent in 2020, while return on assets improved to 1.49 percent from 1.15 percent.
PBCom president and chief executive Patricia May Siy said the bank’s focus on core businesses such as corporate lending and generation of low-cost deposits led to a steady income despite market uncertainties.
“We likewise believe that we have our non-performing loans under control as shown by reduced requirements for provisioning,” she said.
Net interest income went up by 8.1 percent to P4.24 billion. Loans and receivables showed healthy growth, expanding by 10.2 percent to P63.5 billion and higher than the industry growth of 4.9 percent.
Deposit volume grew by 3.8 percent, led by a 30-percent or P12-billion growth in low-interest bearing deposit base.
The increase in low-cost deposits, which now represent 60.4 percent of the deposit mix, helped cushion the impact of a low-interest rate environment with net interest margin at 4.83 percent, an improvement of 20 basis points from 2020.
Non-interest income showed a decline largely due to trading and rental income.
Total assets reached P109.23 billion in 2021, an increase of P7.99 billion or 7.9 percent, while capital strengthened by P1.65 billion to P14.18 billion.
The bank said common equity tier 1 and capital adequacy ratios were at 15.58 percent and 18.18 percent, respectively, in excess of the required regulatory ratios.
PBCOM announced in February that it secured the approval from the Bangko Sentral ng Pilipinas to upgrade its license to that of a universal bank. The license upgrade allows PBCom to pursue its plans to broaden its product and service offerings.
“We are proud and thankful for this privilege to become a universal bank. Our steady growth in the past years that began with the entry of the Lucio Co Group has been noteworthy,” PBCom chairman Eric Recto said.
“We now have a solid capital base from which we can expand our banking services in order to serve the needs of our valued customers,” Recto said.
Founded in 1939, PBCom has its roots in Binondo, Manila and now operates 95 branches across the country. It has complemented its branch network with digital corporate cash management services, online and mobile banking and cloud-based digital accounts.
The entry of Lucio Co as the bank’s strategic investor in 2014 put PBCom in a unique position for growth, leveraging on the ecosystem of the Puregold Group. The bank is focused on building its capabilities to serve the banking needs of the group’s suppliers, trade partners, service providers and loyal customers.
The bank continues to expand its services to cater to new markets, striving always to provide customer satisfaction through innovative financial solutions and distinctive customer service.
