PHILIPPINE Business Bank (PBB), a listed bank owned by former ambassador Alfredo Yao, said on Thursday its net income declined by 46.6 percent to P536.2 million last year due to lack of industry-wide trading gains.
But their income — excluding trading gains — surged by 90.9 percent to 933.7 million from P444.5 million in 2013, net revenues increased by 35.9 percent to P2.5 billion, and net interest income grew by 29 percent to P2.2 billion from P1.7 billion, the bank said in a statement.
“Our performance in 2014 was satisfactory given the intense competition and the uncertainty with regard to record-low borrowing costs,” PBB President and Chief Executive Officer Roland Avante said.
“The core income we delivered in 2014, at over P900 million, highlights the maturation of the bank from one that is reliant on its treasury trading business to one that is a more mature and more resilient financial services firm,” he said.
Total loans and receivables, including unquoted debt securities, jumped 26.9 percent to P41 billion. Total loan book and deposits advanced to P39.5 billion and P46.6 billion from P30.7 billion and P37.9 billion, respectively.
PBB opened 16 new branches last year and ended 2014 with 116 bank network from the 100 in 2013. In the first three months of the year, the bank opened five more branches.
The bank expects to open 20 to 25 more branches for the rest of the year, capitalizing on the areas with a high concentration of small and medium enterprises (SMEs) and entrepreneurs.
“We understand the importance of establishing our presence in areas with a high concentration of SMEs and entrepreneurs. While short-term performance may lag due to a drag caused by the opening of branches, and the necessary expenses associated with additional personnel and other fixed costs, we at PBB are delighted to invest for the future,” Avante said.
Incorporated in 1997, PBB is a bank that focuses on corporate and SME markets mostly in Caloocan, Malabon, Navotas, Valenzuela, and Quezon City where SMEs are highly concentrated. The bank is also present in other cities outside Metro Manila such as Cebu, Davao, and Bacolod.