Philippine Business Bank (PSE: PBB) reported a net income of PhP578.9 million for the second quarter of 2019, up 66.3% versus PhP348.2 million in the same period last year. Interest income also increased by 32.0% from PhP2.5 billion as of June 2018 to PhP3.3 billion this year. The Bank’s net interest income expanded by 8.4% to PhP1.9 billion versus the PhP1.8 million figure of the previous year. Pre-tax pre-provision profit reported a 46.1% growth from PhP613.1 million in the second quarter of 2018 to PhP895.8 million this year. Profit before tax reached PhP745.8 million, up 48.2% YoY.
“PBB continues to show promising growth this year as the Bank continued to improve its lending business while taking advantage of trading opportunities. The first half profit of PhP578.9 million was achieved on the back of the continued growth of our loans and deposit portfolio and exploiting opportunities in the fixed income market,” said Roland Avante, President and CEO of Philippine Business Bank.
Total loans and receivables ended at PhP80.7 billion for the second quarter of 2019, PhP3.2 billion higher versus PhP77.5 billion in the same period last year. Total resources increased by PhP7.5 billion reaching PhP100.5 billion. On the funding side, the Bank’s low-cost funds expanded by 17.2% ending the first six months of 2019 at PhP35.4 billion versus last year’s PhP30.2 billion. Total deposits ended at PhP84.3 billion, up PhP5.2 billion YoY.
Shareholder’s equity was at PhP12.1 billion, equivalent to a book value per share of PhP17.76 net of preferred shares. PBB’s net interest margin was at 4.11% in June 2019. Annualized ROAA and ROAE ended at 1.19% and 9.89% for the second quarter of 2019. The Bank recently issued three-year, PhP3.0 billion notes as part of its funding diversification program.
(1) Pre-tax pre-provision profit is net revenues less non-interest expenses