Yao-led thrift bank posts 15% rise in 9-month earnings

MANILA, Philippines — Yao-led Philippine Business Bank (PBB) recorded a 15.2-percent increase in net income to P926.6 million from January to September compared to a year-ago level of P804.3 million.

PBB president and CEO Roland Avante said that 2022 has been a challenging year, with uncertainties affecting the global macroeconomic picture.

The country’s second largest thrift bank, owned by businessman Alfredo Yao of the Zest-O Group, reported a net interest income of P4.02 billion in the first nine months.

It also reported a core income of P2.85 billion, pre-tax pre-provision profit of P1.87 billion and a profit before tax of P1.3 billion.

PBB’s total resources amounted to P125 billion as of end-September, as total loans and receivables went up by 14.7 percent to P98 billion from P85.4 billion as credit activity began to gain momentum with the easing of restrictions and the resulting improvements in market demand.

Likewise, the bank’s deposit liabilities inched up by 2.4 percent to P105.6 billion from P103.1 billion.

Although income growth remains steady, Avante said PBB sees headwinds in the remaining months of 2022 and early 2023, as inflation remains high and the peso continues to weaken.

Shareholders’ equity was at P14 billion, equivalent to a book value per share of P20.79 net of preferred shares. Returns on assets and equity improved to 0.99 percent and 8.82 percent owing to net income growth.

Net interest margin also improved to 4.33 percent in end-September from 4.06 percent in March.

PBB’s capital adequacy ratio (CAR) was 13.82 percent and minimum liquidity ratio (MLR) at 20.02 percent in the first nine-months of 2022, above the adjusted statutory MLR requirement of 16 percent.

The mid-sized bank earlier received stockholders’ approval to increase its authorized capital stock to P15 billion from P10 billion.

“This will better position the bank to support the needs of its SME clientele. Our long-term aspiration of building a full-service financial institution is slowly coming to fruition,” Avante said.