PHILIPPINE Bank of Communications’ (PBCom) net income in 2016 nearly doubled to P400.1 million from P203.3 million in 2015 based on the equity method for parent and subsidiaries, driven by improvements in its core business and prudent cost management.
“Parent bank showed a very strong growth in net income from P132.1 million to P350.1 million, cushioning the decline in net income of its subsidiaries. PBCom Management set to accomplish and achieved increased profitability through combined topline growth in revenues, driven by improvements in its core business and prudent cost management,” PBCom said in a disclosure to the Philippine Stock Exchange (PSE) on Tuesday.
It said one of the main drivers for the solid growth was the increase in loans and receivables, which expanded 28 percent from P34.6 billion to P44.3 billion, with focus on secured consumer loans and bankable large and middle market corporates.
This contributed to the increase in interest income from loans and receivables by P240.2 million to P2.5 billion, it said.
The bank said interest and finance charges were also under control, with interest charges on deposit liabilities going down to P799.7 million from P825.4 million, despite the growth in deposit liabilities from P56.6 billion to P61.2 billion.
PBCom added that it achieved a low cost ratio of 36 percent over total deposit liabilities.
Non-interest income was also strong. Netting out fair market value gains, this grew by 31 percent on the back of improved securities and trading gains, it said.
The bank’s total operating expenses declined to P3.1 billion from P3.3 billion because of efficiencies derived in areas of manpower, communications, and fees and services.
PBCom’s expansion in total assets from P74 billion to P84.4 billion was supported by the infusion of the third tranche of capital from PG Holdings Inc. in the amount of P1.4 billion which came in on June 30, 2016, ahead of its original schedule of September 30, 2016.
In 2016, PBCom said it strengthened its growth pillars in the areas of “people, products, processes, place and partnerships,” following a move in 2015 to lay the foundation for sustained growth.
“The rebuilding continues, paving the way for the bank to deliver its optimum returns to its stakeholder,” PBCom President and Chief Executive Officer Patricia May Siy said.