Philippine Business Bank of Zest-O Corp. owner Alfredo Yao is increasing its capital base to P20 billion from P10 billion in a bid to fund future growth and expansion programs.
The bank said in a disclosure to the stock exchange Friday the increase in capital stock was in preparation for an enlarged shareholders’ equity base.
It said the increase would be subject to the approval of shareholders, the Bangko Sentral ng Pilipinas and the Securities and Exchange Commission.
“PBB is increasing its authorized capital stock in preparation for an enlarged shareholders’ equity base. This will greatly expand the bank’s capability to develop more businesses and harness opportunities in the financial services space,” the bank said.
“The increase will enable PBB to meet the growing demands of the banking business,” it said.
PBB is one of the leading savings banks in the country.
PBB posted a P262.09-million net income in the third quarter of 2018, up 162 percent from P99.99 million in the same quarter a year ago. Thp rofit brought PBB’s year-to-date net income to P610.25 million, up 38.6 percent from last year’s P440.31 million.
PBB president and chief executive Rolando Avante said the 38.6-percent growth in net profit in the first nine months underscored the bank’s transformation from a treasury-focused institution to a full service thrift bank.
The bank’s net interest income in the third quarter stood at P928.99 million, up 17.7 percent from P789.05 million a year ago. Julito G. Rada
Profit on loans and other receivables drove the bank’s net interest earnings to reach P1.34 billion in the third quarter, up 38.7 percent from last year’s P966.42 million.
The bank’s loans and receivables stood at P80.3 billion as of end-September, up 23 percent from a year ago.
Total deposits reached P79.6 billion at end-September, 18.8 percent higher year-on-year, with low-cost funds growing 9.7 percent to P29.8 billion. Meanwhile, time deposits rose 24.9 percent to P49.8 billion.