MANILA, Philippines — Lucio Co’s Philippine Bank of Communications (PBCom) booked an income growth of 36 percent to P1.85 billion in the first nine months from P1.36 billion in the same period in 2023 amid higher operating income.
In its quarterly report disclosed to the Philippine Stock Exchange, the bank said that its operating income grew by 23.3 percent to P5.4 billion from P4.38 billion in the comparable year-ago period due to better net interest income and trading performance.
The bank’s interest income rose by 13.7 percent to P3.96 billion from P3.48 billion due to asset growth and higher yields in both loan and securities portfolio.
Operating expenses jumped by 23.5 percent to P5.4 billion from P4.38 billion mainly due to higher manpower costs, provision for impairment losses, depreciation and amortization as well as higher occupancy and other equipment related costs.
However, the bank’s net interest margin went down to 3.92 percent as of September from 3.98 percent in the same period a year ago.
The lender’s total assets increased by 11.2 percent to P158.4 billion as of September from P142.5 billion as of December 2023 due to higher debt securities, increase in foreclosed properties as well as growth in loans and other receivables.
Total loans grew by 25.5 percent to P5.44 billion from P4.34 billion previously, while investment securities jumped by 26.5 percent to P1.55 billion.
But the bank’s gross non-performing loan ratio stood at 3.38 percent as of the third quarter, 61 basis points higher than the 2.77 percent ratio at the end of 2023.
PBCom’s capital stood at P19.5 billion, 10 percent higher than the P17.7 billion in December last year. The bank attributed the increase to its earnings in the third quarter.
For the third quarter alone, the bank booked a net income of P821.2 million, more than double the P358.7 million earned in the same quarter last year.
The bank’s capital adequacy ratio and common equity tier -1 ratio were at 17.07 percent and 14.84 percent, respectively. Both ratios are above the minimum regulatory requirements.