Philippine Bank of Communications, the 19th largest lender in terms of assets, said Tuesday it posted a net income of P400.1 million in 2016, almost double the net profit of P203.3 million in 2015, on the strength of core businesses.
PBCom said in a disclosure to the stock exchange one of the main drivers for the solid growth was the increase in loans and receivables which expanded 28 percent from P34.6 billion to P44.3 billion.
“This contributed to the increase in interest income from loans and receivables by P240.2 million to P2.5 billion,” the bank said.
“Interest and finance charges were also under control, with interest charges on deposit liabilities going down to P799.7 million from P825.4 million despite the growth in deposit liabilities from P56.6 billion to P61.2 billion, with focus on low-cost funding source,” the bank said.
PBCom said it achieved a low-cost ratio of 36 percent over total deposit liabilities.
Non-interest income, netting out fair market value gains, grew 31 percent on the back of improved securities and trading gains.
Total operating expenses declined to P3.1 billion from P3.3 billion because of efficiencies derived in areas of manpower, communications, and fees and services.
Total assets expanded from P74 billion to P84.4 billion, supported by the infusion of the third tranche of capital from PG Holdings Inc. in the amount of P1.4 billion.
PG Holdings Inc. is majority owned by Lucio Co of Cosco Capital Inc., the holding firm of top retailers Puregold and S&R.
PBCom president and chief executive Patricia May Siy said the bank strengthened its growth pillars last year in the areas of people, products, processes, place and partnerships, following a move in 2015 to lay the foundation for sustained growth.
“The rebuilding continues, paving the way for the bank to deliver its optimum returns to its stakeholder,” she said.