Philippine Business Bank, one of the country’s leading savings banks, announced its financial results for the first quarter of 2026.
Despite a challenging global environment, the Bank demonstrated the strength of its core operations, reporting significant growth in interest income and a steady expansion of its loan portfolio.
Financial highlights for Q1 2026:
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Interest Income: Increased to ₱2,841.8 million.
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Net Interest Income: Grew to ₱1,884.2 million, up ₱58.5 million year-on-year.
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Core Income: Reached ₱952.3 million, a ₱57.0 million increase over the same period last year.
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Net Interest Margin (NIM): Improved to 4.76%, up 12 basis points from 4.64% in March 2025.
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Total Loans and Receivables: Rose to ₱125.7 billion, up ₱2.9 billion year-on-year.
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Total Resources: Stood at ₱164.0 billion as of end-March 2026.
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Shareholders’ Equity: Recorded at ₱21.1 billion, representing a book value per share of ₱25.00 (net of preferred shares).
The first quarter of 2026 was marked by significant geopolitical instability, specifically the flare-up of hostilities in the Middle East. This disruption triggered a rise in global oil prices and heightened inflationary pressures. Locally, the economy continued to feel the secondary effects of the previous year’s flood control scandal, contributing to a sluggish GDP growth of 3.0% in the preceding quarter.
While these factors led to mark-to-market trading losses due to surging yields, PBB’s traditional banking income remained robust. The Bank maintained a healthy capital position with a Capital Adequacy Ratio (CAR) of 12.4% and a Minimum Liquidity Ratio (MLR) of 24.8%, both comfortably above regulatory requirements.
PBB’s management remains committed to a strategy focused on high-quality commercial relationships and the expansion of high-margin consumer segments. A key highlight of the quarter was the performance of the Makaguro loan portfolio, which grew to ₱7.4 billion—1.8 times the level recorded in Q1 2025.
“The outlook for 2026 was drastically upended by global disruptions, making for an uphill landscape for the banking industry,” said Rolando Avante, Vice Chairman, President, and CEO of Philippine Business Bank. “However, through these headwinds, PBB’s core income sources have expanded. We are taking a prudent stance while focusing on the delivery of solutions to our clients. Our strategy for the rest of the year is clear: strengthen our commercial liability side and push the trajectory of our high-margin consumer businesses like the Makaguro loans.”
Commitment to Client Relationships Other income, excluding trading fluctuations, grew by 13.0%, primarily driven by loan-related fees. This growth underscores the Bank’s ability to deepen its engagement with its core SME and commercial client base.
“Client relationships have always been one of PBB’s core strengths,” added Avante. “The Bank continues to work hand-in-hand with its clients by providing banking solutions that support their business requirements, even in a volatile economic climate.”
