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Philippine Business Bank, Inc. (PBB), banking arm of Alfredo M. Yao, has announced a consistent increase in its net income, with a growth rate of 12.3% in 2022 and an impressive 57.7% in the first quarter of this year, according to separate disclosures made to the Philippine Stock Exchange (PSE).
The Bank completed the ₱1.75 billion capital raise early this year, which included a ₱1.25 billion private placement by the Yao Family and Zest-O Corporation and a ₱500 million Stock Rights Offer (SRO). The proceeds increased PBB’s capitalization and enhanced the Bank’s ability to expand its loan and investment securities portfolio.
In 2022, PBB posted a net profit of ₱1,311.4 million, a significant rise from ₱1,168.2 million the previous year. Similarly, the Bank’s core income demonstrated a positive trend, reaching ₱3,085.3 million in 2022, representing a YoY growth of 10.4%. Pre-tax pre-provision profit reached ₱2,683.1 million in year-end 2022, a ₱142.8 million increase from last year. Net interest income also saw an increase, totaling ₱5,547.4 million in 2022.
PBB witnessed growth in loans and receivables, reaching ₱103.5 billion in 2022, demonstrating a 12.9% increase. On the funding side, total deposits amounted to ₱114.5 billion in year-end 2022.
The Bank’s total resources stood at ₱134.6 billion in 2022. PBB’s total equity amounted to ₱14.6 billion in 2022, resulting in a book value per share of ₱21.68 net of preferred shares.
During the first quarter of 2023, the Bank reported a net profit of ₱488.8 million, compared to ₱310.0 million in the same period of 2022. Pre-tax pre-provision profit also significantly grew by 41.9% ₱from 582.9 million in the first quarter of 2022 to ₱827.2 million in the first three months of 2023. Net interest income also recorded a ₱303.0 million increase to ₱1,598.5 million in the first quarter of 2023.
Loans and receivables further rose to ₱103.6 billion as of March 2023 while total deposits amounted to ₱111.1 billion in the first quarter of 2023.
In the first quarter of 2023, PBB raised a total of ₱1.75 billion capital which comprises the ₱1.25 billion private placement and ₱500 million from its stock rights offering (“SRO”). The proceeds increased PBB’s capitalization and enhanced the Bank’s ability to expand its loan, investment securities portfolio, and partially comply with the minimum capital requirement for a universal bank license. With an upgraded license, PBB will be able to provide a full-suite of financial services for a wider range of clients.
“As the Philippines further develops its digital sector, more and more people are opting for the speed and convenience of using mobile banking to pay bills, check their balances, and make transfers on the go. This technological trend is set to continue in the foreseeable future, as people embrace the new ways in managing their finances. In line with this, PBB is expanding its reach by offering mobile banking services to suit the needs of its clients. The Bank continues to show resilience despite the global market uncertainties, domestic challenges, and interest rate hikes. PBB remains committed to delivering long-term value for its clients and shareholders. PBB appreciates the guidance of its regulators including the BSP, PSE, and SEC which were crucial to the success of its capital raising initiatives. The Bank is also thankful for the continued support of its shareholders, the Yao Family, and its clients. PBB will continue to capitalize its balance sheet, boost operational capabilities, and improve its services to its. The Bank continues to work hard to become the bank of choice of SMEs,” said Cynthia Almirez, Chief Operating Officer of Philippine Business Bank.
PBB’s adequacy ratio reached 13.85% in 2022, while the minimum liquidity ratio stood at 21.75%. In the first quarter of this year, the adequacy ratio was 13.56%, with the minimum liquidity ratio at 21.77%.
