By James A. Loyola
Philippine Business Bank (PBB) reported a 30 percent drop in net income for the first nine months of 2017 to P466.1 million from P669.96 million in the same period last year due to lower trading gains and higher loan loss provisioning.
In a disclosure to the Philippine Stock Exchange, the bank said nine-month core income expanded by 50.6 percent to P673.7 million versus the P447.3 million from the same period last year.
Overall interest income for the nine months ended September 2017 increased by 15.8 percent to P2.7 billion in 2017 from P2.4 billion in 2016 due to the increase in interest income from loans and the 88 percent growth in interest income on securities purchased under reverse repurchase agreement.
Interest income from loans and other receivables increased by 29.8 percent to P2.54 billion in the first nine months of 2017 from P1.96 billion in the same period last year.
“Our loan portfolio expanded over 37 percent to P65 billion while our deposits are up almost 24 percent to P67 billion, and our total resources grew over 22 percent to P80 billion,” said PBB President Roland Avante.
As a result, Avante said all of PBB’s core brick-and-mortar income sources such as net interest income, service fees, and miscellaneous income expanded versus the same period last year.
“However, due to the lack of trading opportunities this year brought about by the pressure on interest rates to go up, PBB felt it was prudent to limit trading activities this year,” he explained.
Trading gains were at P114.4 million, lower by 70.2 percent or almost P270 million year-over-year.