LISTED Philippine Business Bank (PBB) said on Friday its net income last year grew by 33.2 percent to P668.6 million from P502.1 million in 2015 as the company benefited from the reorganization of its lending units.
Pre-tax pre-provision profit (PTPP) rose 17.6 percent to P1 billion against the P887.5 million recorded in 2015.
Pre-tax earnings grew 24 percent year-on-year to P874.5 million from 2015’s P705.4 million.
“My first full year as the president and CEO of PBB was in 2012. Our core income that year stood at ₱70.6 million. By 2016, it has grown 9.9 times to ₱696.1 million. The Bank will continue to strengthen its core business by expanding our branch network and our loan portfolio. Our PTPP, which measures the Bank’s pretax cash earnings, continues to grow. We ended 2016 with a PTPP of over 1.0 billion,” PBB chief executive officer and President Roland Avante said in a statement.
In 2016, PBB was able to grow its loan portfolio to P51.4 billion, a P9.7 billion increase year-on-year.
Asset quality was stable as year-end 2016 NPL ratio stood at 2.5 percent versus 2.9 percent in 2015, the company said, adding that loan growth was a direct result of PBB’s reorganization of its lending groups.
The reorganization was completed during the first half of 2016 as the bank streamlined its account management processes, resulting in the establishment of the Institutional Banking Group (IBG).
IBG is composed of the following units: Commercial Banking, Corporate Banking, and Consumer Banking.
The re-engineering of the bank’s account management teams and the formation of the Institutional Banking Group had an immediate impact, as loans in the second half of 2016 grew by 21.5 percent versus the first half.
“Our resolve to serve the SME [small and medium enterprise) market remains the same. We will continue to focus on expanding our footprint throughout the Philippines to reach all corners of the country and answer the financing needs of the SME market,” the bank said.