PBCOM registers robust net income growth in 1H

PBCOM registers robust net income growth in 1H

Philippine Bank of Communications (PBCOM) reported a consolidated net income of P326.5M in the first six months of 2017, up 464.1% compared to the same period last year on the back of continued improvements in PBCOM’s operating income which increased by P256.0M, or 14.6%.

Net Interest Income excluding one-off items grew by P91.1M driven by the growth in the Loan and Securities portfolios and the continued progress in the bank’s funding cost structure as low cost deposit to total deposit ratio improved to 37.1%. Net Interest Margin remained at 4.34%. Non-Interest Income, on the other hand, improved by 13.5% to P603.4M with registered growth in Fees and Commissions, Rental, FX Gains and Gains from Asset Sale. This resulted to the Return on Asset improving to 0.73% from 0.14% for comparative figure in 2016.

The Bank’s continuing focus to manage cost through streamlined operations kept Operating Expenses relatively flat vis-à-vis first half 2016. Cost to Income Ratio decreased from 90.2% to 78.8% as the Bank’s initiatives to further increase operational efficiencies continue to bear fruit.

PBCOM’s Total Assets reached P91.8B, up by 6.1% or P5.3B over end December 2016 levels, buoyed by the growth in Loans and Securities portfolio by P1.4B and P3.7B, respectively. Growth in lending and trading activities were supported by increase in the Bank’s Deposits and Deposit Substitutes which expanded by P4.5B.

Total Capital ended at P11.1B and capitalization ratios remain strongly above regulatory requirements as the Capital Adequacy Ratio stood at 14.83% for the period.

In July this year, PBCOM received from the Bangko Sentral ng Pilipinas (BSP) the prestigious Pagtugon Award given for the Bank’s support to the BSP’s advocacy on Customer Protection.