Philippine Business Bank (PBB) announced its financial results for the first six months of 2025, demonstrating strong growth in core operations and a strategic commitment to asset quality. The bank reported a net income of ₱1,065.4 million, with a significant expansion in its interest differential business.
PBB’s interest income grew by 12.5% to ₱5,832.3 million, up from ₱5,184.1 million in the same period last year. This led to a 10.3% increase in net interest income, which reached ₱3,693.2 million. The bank’s core income also increased to ₱1,810.1 million, underscoring robust profitability.
In the first half of 2025, PBB took a more aggressive approach to provisioning, setting aside ₱350 million for loan loss provisions, ₱150 million higher than the previous year. This prudent strategy ensured the bank’s Non-Performing Loan (NPL) coverage ended at a healthy 104%, reinforcing its commitment to maintaining a strong asset quality.
“The Bank’s ₱1,065.4 million net income was achieved with the continued expansion of the Bank’s core business,” said Roland Avante, Vice Chairman, President, and CEO of Philippine Business Bank. “Had PBB maintained provisioning levels similar to the previous year, net income for the first half of 2025 would have ended at approximately ₱1,252.9 million, or a 17.6% increase year-on-year. This underscores the Bank’s commitment to maintaining good asset quality and ensuring adequate coverage to address potential credit risk.”
Key financial highlights for the first six months of 2025 include:
- Total Loans and Receivables reached ₱119.4 billion.
- Total Resources grew by ₱7.8 billion to ₱162.2 billion.
- Deposit Liabilities expanded by ₱7.1 billion to ₱133.5 billion.
- Net Interest Margin improved by 16 basis points to 4.68%.
- Capital Adequacy Ratio (CAR) stood at 12.93% and Minimum Liquidity Ratio (MLR) at 24.51%, both well above the statutory requirements of 10% and 20%, respectively.
- Shareholders’ Equity was at ₱20.2 billion, with a book value per share of ₱23.86.
Avante added, “The Bank’s focus on serving the SME market, while growing core income and maintaining asset quality, remains PBB’s core strategy. The rest of 2025 will likely show better earnings for PBB compared to 2024. In the coming years, we will continue to explore opportunities in consumer finance and corporate lending while we keep our focus on the SME market.”