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PBCom books higher net income on loans, yields

pbcom books higher net income on loans yields - PBCom books higher net income on loans, yields
PBCom - PBCom books higher net income on loans, yields
BW FILE PHOTO

PHILIPPINE BANK of Communications (PBCom) posted higher net income in 2018 driven by improvements in loan volume and yields.

In a regulatory filing Tuesday, the Co-led lender said it posted P626.2 million in net earnings in 2018, up 57.96% from the previous year’s P396.4 million.

The bank said its higher bottom line last year stemmed from the “growth in corporate and consumer loan volume and improvement in yields.”

Net interest income of PBCom grew 7.3% to P3.11 billion in 2018 from P2.9 billion the previous year, bolstered by “better performance” from regular income streams.

Loans and receivables were at P60.1 billion last year, higher by 12.6% from 2017’s P53.4 billion, on the back of an expansion in corporate and consumer loan volume.

Despite an increase in loans handed out, PBCom managed to lower its non-performing loans (NPL) by P7.6 million. Consequently, the lender’s gross NPL ratio declined to 4.4% in 2018 from 5.09% the previous year as a result of improved collection efforts.

Meanwhile, the bank’s deposit base grew 4.66% to P74 billion from P70.7 billion the prior year on the back of the bank’s aggressive marketing strategy to improve its funding mix by focusing on low-cost deposits. Last year, current and savings accounts comprised 38% of PBCom’s total deposit base.

The bank also shored up P2.9 billion from its maiden offering of 5.5-year long-term negotiable certificates of deposit in October.

Meanwhile, interest income from investment and securities grew 4.95% year-on-year on the back of “better market conditions and portfolio mix.”

Overall, total assets of the PBCom Group stood at P103.7 billion at end-2018, up 9.16% from the previous year’s P95 billion.

Capital adequacy ratio was at 14.56%, well above the minimum regulatory requirement of 10%.

“2018 was not an easy year, but the bank put its effort on building the blocks for its sustainable growth, focusing on customer deepening and acquisition, particularly within the identified ecosystem, product development, personnel training and engagement and capacity building,” PBCom President and Chief Executive Officer Patricia May T. Siy was quoted as saying in a separate statement.

In 2014, retail tycoon Lucio L. Co bought a stake in PBCom for nearly P6 billion, making Puregold the bank’s biggest single shareholder.

PBCom shares closed at P21.90 apiece on Tuesday, up 50 centavos or 2.34%. — K.A.N. Vidal

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