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March 05, 2024

Robinsons Bank’s profits plunge 37% to P842 Million in 9 months

Robinsons Bank Corp. witnessed a 37 percent decline in profit to P842.6 million over the first nine months compared to the previous year’s P1.34 billion. The bank’s third-quarter earnings contributed significantly to this downturn.

According to the financial statement submitted to the Philippine Dealing and Exchange Corp. (PDEx), the Gokongwei-led institution experienced a 14.1-percent decrease in net interest income, amounting to P4.99 billion during the nine-month period, down from the previous year’s P5.81 billion.

While the bank’s interest earnings increased by 23.6 percent to P8.68 billion, driven by a larger loan portfolio and improvements in loan-related activities and investment securities, interest expenses tripled to P3.69 billion from P1.2 billion due to higher interest rates and increased deposit liabilities.

Earnings from service fees and commissions witnessed a remarkable surge, rising by 73.8 percent to P509.23 million from P292.87 million.

Robinsons Bank’s total operating income experienced a 4.6 percent decline to P6.16 billion from P6.46 billion, while operating expenses saw a marginal increase of two percent to P4.89 billion from P4.77 billion.

The provision for credit and impairment losses decreased by 17.2 percent to P438.35 million from P529.64 million.

In the third quarter alone, the bank’s net income plummeted by 64.2 percent to P166.17 million compared to P464.34 million in the corresponding quarter of the previous year.

Over the July to September period, total operating income retreated by 5.9 percent to P1.95 billion, down from the previous year’s P2.08 billion, while operating expenses rose by 11 percent to P1.65 billion from P1.49 billion.

Robinsons Bank, with 60 percent ownership by JG Summit Capital Services Corp. and 40 percent by Robinsons Retail Holdings Inc., saw its asset base increase to P190.54 billion by the end of June, up from P187.83 billion at the end of December.

The bank aims to finalize a proposed merger with Ayala-led Bank of the Philippine Islands by January of the next year.

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