Publicly-listed Philippine Business Bank, the financial arm of the Yao Group of Companies, said net income in the first half of 2018 climbed 16 percent to P348.2 million from P299.8 million a year ago as core businesses remained strong.
PBB said in a disclosure to the stock exchange core income reached ₱669.9 million in the first six months, up 58 percent from ₱422.7 million year-on-year.
Interest income expanded 40 percent to ₱2.5 billion from ₱1.8 billion in 2017. Pre-tax pre-provision profit rose to ₱613.1 million from ₱520.4 million, an 18-percent increase on year.
“Following the streamlining of our core lending and account management processes in 2016, the business momentum that we built in 2017 continues to this day. We are seeing sustained strong demand for financing, even as competition for funding has stiffened,” bank president and chief executive Roland Avante said.
Non-interest income rose 54 percent to ₱158.8 million from ₱103.1 million a year ago. Avante said the core income of ₱669.9 million highlighted the robust business model the bank has developed.
“In 2017, we needed nine months to raise ₱670 million in core income; in 2016, it took the whole year. Loans and receivables expanded by ₱18.7 billion or 31.9 percent versus last year. PBB has come a long way from its days as a trading-oriented bank. We see good opportunities for PBB in the next six months that should allow us to be selective in funding various projects and businesses,” Avante said.
Total loans and receivables stood at ₱77.5 billion in the first six months, up 32 percent from a year ago. As a result, total resources expanded 26 percent to ₱92.9 billion.
Total deposits increased to ₱79.1 billion at the end of the first half of 2018. Low-cost funds grew 19 percent to ₱30.2 billion as of June 2018, while time deposits rose 36 percent to ₱48.9 billion.
“We have put up 87 additional branches since 2011 through the end of the first half of 2018. We will continue to tactically expand our footprint throughout the Philippines to reach all corners of the country. We are confident that we will continue to drive long-term value for our clients while helping build the SME community in the Philippines,” Avante said.