PBCOM Net Income Almost Double on Strong Income from Core Business
Philippine Bank of Communications (PBCOM) registered Net Income of P400.1 Million, almost double its 2015 Net Income of P203.3 Million based on equity method for parent and subsidiaries. Parent Bank showed a very strong growth in Net Income from P132.1 Million to P350.1 Million, cushioning the decline in Net Income of its subsidiaries.
PBCOM Management set to accomplish and achieved increased profitability through combined topline growth in revenues, driven by improvements in its core business and prudent cost management.
One of the main drivers for the solid growth is increase in PBCOM’s Loans and Receivables which expanded 28.0% from P34.6 Billion to P44.3 Billion, with focus on secured consumer loans and bankable large and middle market corporates. This contributed to the increase in Interest Income from Loans and Receivables by P240.2 Million to P2.5 Billion. Interest and Finance charges were also under control, with Interest charges on Deposit liabilities going down to P799.7 Million from P825.4 Million despite the growth in Deposit Liabilities from P56.6 Billion to P61.2 Billion, with focus on low cost funding source. PBCOM achieved a low cost ratio of 36.0% over total Deposit Liabilities.
Non-Interest Income was likewise strong, and netting out Fair Market Value gains, this grew by 31.0% on the back of improved Securities and Trading gains.
Total Operating expenses declined to P3.1 Billion from P3.3 Billion because of efficiencies derived in areas of manpower, communications, and fees and services.
PBCOM’s expansion in Total Assets from P74.0 Billion to P84.4 Billion was supported by the infusion of the third tranche of capital from PG Holdings, Inc. in the amount of P1.4 Billion which came in on June 30, 2016, ahead of its original schedule of September 30, 2016. PG Holdings, Inc. is majority owned by Mr. Lucio Co of Cosco Capital, Inc., the holding firm of top retailers Puregold and S&R.
In 2016, PBCOM strengthened its growth pillars in the areas of people, products, processes, place and partnerships, following a move in 2015 to lay the foundation for sustained growth. As President & CEO Patricia May T. Siy puts it, “The rebuilding continues, paving the way for the Bank to deliver its optimum returns to its stakeholder.” Backed by very stable and supportive shareholders, able and cohesive management team, investments in infrastructure, PBCOM is working its way to become a significant player in the Philippine banking industry.