Philippine Business Bank said first-half net income fell 40.4% to P634.4 million from P1.06 billion a year earlier, as volatile financial markets and economic uncertainty weighed on the lender’s performance.
The bank, controlled by businessman Alfredo Yao, however, saw earnings recover in the second quarter, with net income rising 86.3% to P412.8 million from P221.6 million in the first three months of the year.
PBB president and CEO Rolando Avante said the operating environment remained challenging, citing higher global oil prices, inflationary pressures and financial market volatility stemming from conflict in the Middle East.
“The conflict in the Middle East drove global oil prices higher, resulting in renewed inflationary pressures, dampened economic activities, and increased volatility across financial markets,” Avante said.
PBB reduced its exposure to market risk during the period and prioritized capital preservation and liquidity over near-term earnings growth, while continuing to expand its core lending business.
The bank’s Makaguro loan portfolio grew 70% from a year earlier as the bank expanded lending under the program.
PBB said it also continued to manage credit exposures and maintain provisions against emerging risks to preserve asset quality.
The lender expects the second-quarter earnings recovery to carry into the remainder of the year.
“PBB views the second-quarter results as a better indication of the bank’s earnings performance and expects the momentum to continue through the rest of 2026,” Avante said.
“The bank aims to sustain the positive earnings momentum recorded in the second quarter through the remainder of 2026 while maintaining a prudent and measured approach to capital and liquidity,” he added.
PBB had 158 branches nationwide as of the end of June.
