Philippine Business Bank (PBB) began 2025 with robust momentum, reporting a 15.4% year-on-year increase in net income to ₱590 million in the first quarter, even as it adopted a more proactive stance on risk management by tripling its loan loss provisions.
In line with its forward-looking risk mitigation strategy, PBB set aside ₱175 million in loan loss provisions in Q1 2025, up significantly from ₱50 million during the same period last year. The move underscores the Bank’s commitment to maintaining financial resilience amidst global uncertainties.
“Had provisions remained at 2024 levels, net income would have grown by 34%,” said Rolando Avante, Vice Chairman, President, and CEO of PBB. “This step reflects our conservative and strategic approach to long-term growth. We continue to strengthen our services, invest in new technology, and build on our network to serve clients better and deliver sustainable value.”
PBB’s core financials demonstrated healthy expansion across key metrics:
- Interest income rose 14.2% to ₱2,877.1 million
- Net interest income increased 12.4% to ₱1,825.7 million
- Core income reached ₱895.3 million, up 14.4%
- Pre-tax pre-provision profit surged by 24.5% to ₱908.7 million
Net interest margin (NIM) improved to 4.64%, up 16 basis points year-on-year
As of March 2025, total loans and receivables stood at ₱122.8 billion, while deposit liabilities reached ₱131.0 billion. Total resources were at ₱160.8 billion, and shareholders’ equity amounted to ₱20.1 billion, reflecting a book value per share of ₱23.77 (net of preferred shares). The Bank posted annualized ROA of 1.47% and ROE of 11.75%.
PBB’s strong capital position remains a key differentiator, with a capital adequacy ratio of 13.0% and a minimum liquidity ratio of 23.8%, both comfortably above regulatory thresholds.
The Bank continues to prioritize high-quality credit exposures, focusing on existing relationships, SME clients, and its rapidly expanding teachers’ loans portfolio. Avante emphasized the Bank’s ongoing initiatives: “Strengthened collection policies, restructuring programs, and deepened ties with our SME customers remain our top priorities.”
PBB’s Q1 performance highlights its resilience and disciplined growth strategy, setting a solid foundation for continued success in 2025.
