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PHL Business Bank posts net profit gain of 12% in third quarter

phl business bank posts net profit gain of 12 in third quarter - PHL Business Bank posts net profit gain of 12% in third quarter

Philippine Business Bank said net profit rose 12% in the three months to September after a strong performance by its core business and trading operations.

The bank posted a net profit of P501.2 million in the period, against P445.6 million a year earlier, according to data on the website of the Philippine Stock Exchange.

Nine-month earnings came in at P1.3 billion, up 26.5% from a year earlier.

During the nine months, net interest income rose 31.2% year-on-year to P4.2 billion, with core income accounting fore P2.02 billion, up 51.5%, while trading income provided P660 million.

Loans and receivables were at P87 billion at the end of September, while assets rose to P110.7 billion from the P108.6 billion a year earlier.

Loan loss reserves amounted to P950 million in the first nine months, against P275.0 million a year earlier.

“We expect to increase our reserves as the impact of this pandemic unfolds. While our performance this year remains very strong, the next few years will be challenging given the weakness in the economy and the unabated spread of the virus,” the bank said.

Deposit liabilities grew to P91.0 billion from P88.5 billion with a 22.8% increase in low-cost funds. This resulted in an improved ratio of low-cost to high-cost funding to 51:49 from 43:57 a year earlier.

The net interest margin (NIM) at the end of September widened to 5.19% from 4.33% a year earlier.

“We see downward pressure in NIMs moving forward as the industry seeks to protect its portfolio of good names,” the bank said.

Return on average assets stood at 1.54% while return on average equity hit 12.76%. — Kathryn Kristina T. Jose

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