Philippine Business Bank (PBB) is sharpening its focus on strengthening its core lending operations, following a robust financial performance in 2024 marked by a significant increase in interest income and overall profitability.
For the year ended December 2024, PBB reported interest income of ₱10.6 billion, a 14.4% increase from ₱9.3 billion in 2023. Net interest income climbed to ₱6.7 billion, while core income rose 10.9% year-over-year to ₱3.4 billion. Profit before tax stood at ₱2.4 billion, resulting in a net income of ₱1.8 billion for the year.
“PBB achieved a 14.9% year-over-year increase in core income, driven by growth in interest income, service fees, and miscellaneous revenues,” said Rolando Avante, Vice Chairman, President, and CEO of PBB. “This performance was partially offset by a decline in trading gains as global interest rate movements diverged from expectations, influenced by late-year geopolitical events.”
Looking ahead, the Bank is adopting a two-pronged strategy focused on enhancing operational efficiency and expanding its portfolio of higher-margin consumer loans. These initiatives aim to sustain growth and improve long-term profitability.
“We are deeply grateful to our clients for their continued trust, to our shareholders and Board for their unwavering support, and to our employees for their hard work and dedication,” Avante added. “As we move forward, PBB remains committed to delivering value and making things happen for all our stakeholders.”
Strong Balance Sheet and Lending Growth
As of December 2024, total assets rose by ₱13.6 billion year-on-year to ₱168.0 billion. Net loans and receivables increased to ₱128.3 billion, up ₱10.7 billion from the previous year’s ₱117.6 billion—underscoring the Bank’s continued focus on credit expansion.
On the funding side, deposit liabilities grew by ₱12.4 billion to ₱139.1 billion. Of this, low-cost CASA (current and savings accounts) deposits totaled ₱69.0 billion, while time deposits stood at ₱70.0 billion.
Solid Capital and Profitability Metrics
Shareholders’ equity reached ₱19.4 billion, translating to a book value per share of ₱22.89 (net of preferred shares). The Bank posted a return on assets (ROA) of 1.1% and a return on equity (ROE) of 9.2%, both supported by strong net income growth.
PBB also maintained a healthy net interest margin (NIM) of 4.3%, while regulatory capital remained well above minimum thresholds. The Bank reported a capital adequacy ratio (CAR) of 12.7% and a minimum liquidity ratio (MLR) of 23.0%, comfortably surpassing the respective statutory requirements of 10.0% and 20.0%.
Long-Term Value Creation
Reflecting the Bank’s resilience and consistent performance, PBB’s net book value per share (excluding preferred shares) has grown by 53.0% over the past five years—from ₱14.96 in 2019 to ₱22.89 in 2024—demonstrating sustained value creation even amid economic challenges such as the pandemic.
