PHILIPPINE BANK of Communications (PBCom) saw its net income grow by 16.08% in the second quarter amid higher revenues.
The lender’s net profit stood at P532.3 million in the three months ended June, up from P458.56 million in the same period last year, its financial statement showed.
This brought its net earnings for the first half to P1.03 billion, up by 2.85% from P999.96 million in the same period last year.
As a result, the bank recorded a return on average equity of 11.42%, down from 12.44% a year prior, and a return on average assets of 1.39%, also declining from 1.55% last year.
PBCom’s net interest income was at P1.36 billion in the second quarter, up by 19.67% from P1.13 billion a year ago, driven by higher interest earnings from loans and investment securities, among others. Net interest margin was at 4.03% at end-June.
Meanwhile, its total operating income grew by 14.72% to P1.69 billion in the second quarter from P1.47 billion in the same period last year, with its higher fee and trust earnings, asset exchange gains, and profits from assets sold mainly propping up its non-interest income.
On the other hand, PBCom’s operating expenses rose by 10.93% to P939.23 million last quarter from P846.72 million, mainly due to higher volume-driven costs.
The bank’s total loans and receivables stood at P89.99 billion at end-June, declining by 1.94% from P91.77 billion at end-2023.
Gross nonperforming loan ratio was at 3.54% as of June, up from 2.77% at end-2023.
On the funding side, total deposits inched down by 0.47% to P41.2 billion from P41.495 billion as demand deposits declined and following the maturity of P2.9 billion in long-term negotiable certificates of deposits.
PBCom’s assets stood at P148.65 billion at end-June, up by 0.79% from P147.48 billion at end-2023.
“This is primarily due to growth in debt securities by P3.5 billion and increase in foreclosed properties by P1 billion, partially offset by decline in loan volume by P3.9 billion, and decrease in due from BSP (Bangko Sentral ng Pilipinas) by P1.6 billion,” it said.
Total equity rose by 4.08% to P18.38 billion from P17.66 billion, “mainly contributed by the earnings of the bank as of the first half of the year,” it said.
The bank’s capital adequacy ratio was at 16.39%, down from 17.27% a year ago but well above the 10% minimum requirement. Its liquidity ratio stood at 24.46%, up from 19.69% at end-2023.
PBCom had 89 regular branches, four branch-lite units, and 166 automated teller machines as of June 30. — A.M.C. Sy
