Philippine Bank of Communications (PBCOM) posted a 4.7% drop in first-quarter net income to ₱472.9 million, as higher operating expenses and weaker trading gains weighed on earnings.
The decline was primarily attributed to a 13.2% rise in operating expenses, driven by increased provisions for impairment losses, higher insurance premiums, and manpower-related costs, the Aboitiz-led lender said in a statement.
Interest income rose 11.1% to ₱2.53 billion, supported by asset expansion and improved yields on the bank’s securities portfolio. However, interest expense increased 6.6% due to higher deposit volumes and the issuance of bonds in late 2024.
Net interest income improved, helping push the net interest margin slightly higher to 4.05% in the first quarter from 4.02% in the same period last year.
Despite the earnings dip, PBCOM’s total assets rose 2.7% to ₱161.1 billion, bolstered by higher placements in financial assets and receivables from the Bangko Sentral ng Pilipinas and other banks.
The bank’s gross non-performing loan (NPL) ratio climbed to 3.59% at the end of March, up from 2.66% at end-2024, but PBCOM said its liquidity position remains sound and compliant with all reserve and regulatory requirements.
Total liabilities grew by 2.6% to ₱141.3 billion, with time deposits increasing by ₱12.8 billion. This was partially offset by a ₱4.3-billion decline in low-cost deposits and a ₱5.5-billion reduction in bills payable.
PBCOM’s capital base expanded to ₱19.8 billion from ₱19.2 billion at the end of December 2024. Its capital adequacy ratio stood at 15.75%, down from 16.84% a year earlier, but still well above the 10% regulatory minimum under Basel III standards.
