MANILA, Philippines - The Philippine Business Bank (PBB) is planning to open 19 branches this year.
PBB president and chief executive officer Roland Avante said that the bank’s continued focus on helping the small and medium enterprises was the driving force behind its brick and mortar expansion program.
“While industry conditions have been much tougher in 2014 than in previous years due to the volatility in the treasury market, the bank remains committed to reaching out to the SMEs (small and medium enterprises) and establishing our presence nationwide,” Avante said.
The branch network expansion significantly contributed to the growth of the bank’s risk assets, including branch network expansion.
PBB holds 19 unutilized branch licenses, due in part to delays in building construction and the lack of strategic locations, which is a key success factor in the viability and profitability of a branch’s operations. It presently operates 116 branches nationwide.
The bank expects to fast track the use of such licenses this year in SME-rich business centers both in Metro Manila and in leading provincial cities nationwide.
The bank is also looking for potential acquisitions as part of growth strategy.
“At PBB, we will always look for ways to deliver adequate economic returns to our shareholders, and part of that strategy, along with strengthening our reach to the SME market by expanding our branch network, is to look for potential acquisitions that will accelerate the bank’s growth and coverage,” Avante said.
The chief executive said that the clamor for greater reach was magnified during its roadshows for its initial public offering.
“We have significantly increased our presence in key strategic locations in the countryside where SMEs are operating, and the bank has steadily built the logistical support of late,” Avante said.
Core income, excluding earnings from trading, has grown rapidly.
As of September 2014, core income more than doubled to P704.9 million from P332.6 million a year ago.
Loans and receivables increased 26 percent to P35.6 billion from P28.2 billion in September 2013.
“We believe that the bank’s earnings, now that it is primarily sourced from the traditional lending and deposit-taking business, has become more consistent and valuable,” Avante said.
PBB is a part of the AMY Group, a conglomerate of companies owned by Alfredo M. Yao. Other firms under the group are Zest-O-Corp., Zest Airways, Semexco Marketing Inc., Harman Foods, Amchem Marketing Inc., American Brands Philippines Inc., and SMI Development Corp.