Philippine Business Bank seeks universal banking license

MANILA, Philippines — Yao-led Philippine Business Bank (PBB) is looking at obtaining a universal banking license from the Bangko Sentral ng Pilipinas (BSP) as early as this year.

In a roundtable discussion, PBB president and CEO Roland Avante said the savings bank is still targeting to obtain a universal banking license within 2024 or 2025.

“We will be going into that pretty soon. The market knows about that,” he said. “Once we feel we’re prepared on all the considerations, we will be there.”

In 2022, PBB beefed up its authorized capital by P5 billion to P15 billion. It is eyeing to reach the P20-billion capitalization requirement of the BSP.

PBB COO Cynthia Almirez said the bank has recently met with the BSP to discuss its initial clearance for the application of a universal bank license.

“We need to start the process this year. The actual (license) takes time for the BSP to grant,” she said. “That’s why, to be conservative with our targets, we are aiming to obtain the license by 2025.”

She added that the bank is looking to launch its digital initiatives this year, including a dedicated mobile banking app for its customers.

Meanwhile, Avante said the bank is on track in meeting its financial targets this year.

PBB is targeting to double its size and income in five to seven years, underpinned by its major growth initiatives such as organic growth programs, external expansion and continuing business improvements.

The bank posted a net income of P1.82 billion in 2023, up 39.1 percent from P1.31 billion in 2022. This was mainly driven by strong asset expansion, better interest rate margins and lower cost-to-income ratios.

PBB’s total resources amounted to P154.4 billion in 2023, 14.8 percent higher versus P134.5 billion a year ago. This, as loans and receivables expanded by 13.5 percent to P117.6 billion from P103.5 billion.

Avante said the bank is also looking to put up more branches this year, eyeing strategic areas in Southern Luzon, Visayas and Mindanao.

However, current economic conditions and risks to the interest rate environment continue to cloud the outlook, he said. Avante hopes the BSP could start cutting rates this year, but this seems unlikely amid geopolitical tensions in the Middle East.