MANILA, Philippines — Lucio Co’s Philippine Bank of Communications (PBCom) booked a modest income growth of 3.7 percent to P1.63 billion in 2022 from P1.57 billion a year earlier despite challenging economic conditions.
According to PBCom, the full-year result reflects the bank’s robust business model as growth in net interest income, fees and commission, and foreign exchange gains offset the impact of revenue headwind from trading activities.
The listed bank reported a 13.3-percent increase in net interest income to P4.81 billion from P4.23 billion as interest earning asset grew by 16.5 percent to P107.8 billion.
The base, PBCom said, is largely funded by P58.2 billion in low-cost deposit, which comprises 58.5 percent of the bank’s total deposit.
The bank’s asset base stood at P124.9 billion last year from P109.23 billion a year ago, making it the 18th largest lending in the Philippines based on data from the Bangko Sentral ng Pilipinas (BSP) as of end-December.
According to the bank, its net interest margin strengthened to 4.83 percent last year.
Its loan book also registered an above industry growth of 18.7 percent to P76.9 billion, while investment securities jumped by 39.6 percent to P21.7 billion.
Amid the steady increase in lending, PBCom’s non-performing loan (NPL) ratio improved to 3.2 percent last year from 4.9 percent in 2021, while NPL coverage increased to 110.7 percent from 80 percent.
The bank’s provision for bad debts reached P287.7 million last year
Its cost to income ratio, net of provision, improved to 56 percent from 57.7 percent despite additional spending on strategic initiatives in relation to business development and investments in information technology.
The strong year-end performance improved the bank’s capital base by 9.8 percent to P15.6 billion, while capital adequacy ratio (CAR) and common equity tier -1 (CET-1) ratio were at 17.1 percent and 14.6 percent, respectively.