Philippine Business Bank (PBB) reported a 46.6-percent drop in net income to P536.2 million in 2014, as branch expansion expense dragged a good part of its bottom line.
PBB President and CEO Roland Avante said the bank’s performance in 2014 was satisfactory given the intense competition and the uncertainty that came with record-low borrowing costs. He said core income of P933.7 million was higher by 90.9 percent from P489.2 million in 2013.
Shareholders equity grew by 14.2 percent to P8 billion. He said pretax preprovision profits of over P900 million highlight the maturation of the bank from one reliant on its treasury trading business to one that is a more mature and more resilient financial services firm.
Total loans and receivables, including unquoted debt securities, was at P41 billion, up P8.7 billion, or 26.9 percent. The bank ended 2014 with P39.5 billion in loans, P8.8 billion higher than 2013’s P30.7 billion.
The bank saw total deposits growing by 23.1 percent, from P37.9 billion to P46.6 billion in 2014. Low-cost funds expanded 30.4 percent to P17.9 billion in 2014.
Time deposits also registered a healthy growth of 18.9 percent, from P24.2 billion to P28.7 billion in 2014.
PBB will open 20 to 25 more branches this year.
“We understand the importance of establishing our presence in areas with a high concentration of SMEs [small and medium-sized enterprises] 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 in a statement.
Genivi Factao