Philippine Bank of Communications (PBCom) reported expanded net-interest income in the January-to-June period as a result of bigger loan portfolio and higher operating income.
In a disclosure to the Philippine Stock Exchange on Monday, the lender posted 6.3 percent higher net-interest earnings in the first half of 2016 to P1.2 billion. The growth was anchored by the expansion of securities and loan portfolios by P5.2 billion and P4.8 billion, respectively.
In the first six months of 2015, PBCom reported lower net income of only P83.52 million that it traced to a “significant decline in trading and securities gains by P55.72 million, driven by current market conditions and lower foreign-exchange revaluation by P9.73 million.”
In its recent news release, the bank said its financial performance in the first six months last year contained a P94.6 million in “fair value gain” under “other income” and its corresponding deferred tax provision of P28.4 million.
“Excluding these two items, operating income would have improved by 7.0 percent, or P114.2 million, and net income by P40.6 million, or 235.-percent growth, in the first half of 2016,” the lender said.
The headway in the bank’s Casa to total deposit ratio broadened the decline in interest and finance charges on deposit liabilities by 2.2 percent, or P10.2 million.
Meanwhile, the lender’s income from trading activities surged to P62.1 million, a 538.8-percent increase, from a loss of P14.2 million in the first half of 2015. The gains from foreign-exchange transactions also showed positive growth averaging 51.7 percent.
Supporting the expansion in lending and trading activities was the equity infusion at PG Holdings Inc. amounting to P1.4 billion in June. The additional capital was injected ahead of its September 2016 schedule.
“PBCom’s focus to build up its core businesses has shown improving trends. The bank has demonstrated consistent strengthening in its financial standing and will continue its efforts to deliver optimum value to its stakeholders,” it added.
In the first three months, the lender reported consolidated net income of P28.1 million, up 59 percent, from P17.6 million.
PBCom posted operating income of P1.8 billion in the first semester on the back of higher income from recurring business activities. Operating expenses increased marginally at 4.2 percent, despite the double-digit growth in core-banking activities.