Philippine Bank of Communications (PBCom) announced a substantial 46.87 percent surge in its net profit for the second quarter, attributed to an enhanced operating income driven by improved trading performance. The bank’s net income for the quarter reached P458.56 million, a notable increase from the P312.23 million reported during the same period in the previous year. This positive performance contributed to the bank’s first-half net income of P999.96 million, marking a significant 37.5 percent rise from the P727.27 million reported a year earlier.
The bank’s performance metrics demonstrated further improvements, with a return on average equity of 12.45 percent for the first semester, up from 10.17 percent in the previous year, along with a higher return on average assets of 1.55 percent, compared to the 1.29 percent recorded in the first half of 2022.
PBCom’s net interest income experienced a decline of 5.63 percent in the second quarter, amounting to P1.13 billion, as the growth in interest expenses (476.7 percent) surpassed the increase in interest income (40.22 percent). Consequently, the bank’s net interest margin reduced to 4.08 percent by the end of June, compared to 4.75 percent during the same period the previous year.
Conversely, the bank’s operating income saw a substantial 17.99 percent rise to P1.47 billion, driven by a P46.39-million trading gain, in contrast to the P199.58-million loss reported the previous year. Operating expenses increased slightly by 4.07 percent to P846.72 million from P813.62 million. PBCom’s provisioning for impairment losses decreased to P8.5 million from P37.16 million.
The bank’s gross loans experienced a growth of 2.42 percent, reaching P78.78 billion by the end of June, compared to P76.92 billion reported at the end of 2022. The nonperforming loan (NPL) ratio improved to 2.79 percent, a reduction from the 3.23 percent reported at the close of 2022.
In terms of funding, deposit liabilities witnessed a minor decline of 1.81 percent, totaling P97.65 billion by the end of June, compared to P99.44 billion at the end of 2022. The bank’s total assets amounted to P132.48 billion as of June, with total equity at P16.57 billion. PBCom’s capital adequacy ratio stood at 17.27 percent by June, an improvement from the 16.55 percent reported in the same period the previous year. The bank’s liquidity ratio remained stable at 21.41 percent at the end of June, consistent with the figure reported at the end of 2022.