Philippine Bank of Communications said Tuesday it posted a 3.7-percent growth in net income in 2022 to P1.63 billion from P1.57 billion in 2021 amid the challenging economic conditions.
PBCom said in a disclosure to the stock exchange the 2022 performance reflected its “robust business model as growth in net interest income, fees and commission and foreign exchange gain offset the impact of revenue headwind from trading activities.”
Net interest income climbed 13.3 percent to P4.81 billion as interest earning asset grew 16.5 percent to P107.8 billion, largely funded by P58.2 billion in low-cost deposit that comprised 58.5 percent of the bank’s total deposit. Net interest margin strengthened to 4.83 percent.
Net loans portfolio registered an above-industry growth of 18.74 percent, ending the year at P76.9 billion, while investment securities grew 39.6 percent to P21.7 billion.
Total asset stood at P124.9 billion while non-performing loan declined to 3.2 percent from 4.9 percent in 2021. Coverage for NPL improved to 110.7 percent from 80.0 percent as the bank added provisions of P287.7 million for the year.
The bank’s cost-to-income ratio, net or provision, improved to 56.0 percent from 57.7 percent despite additional spending on strategic initiatives in relation to business development and investments in information technology.
The strong year-end performance improved capital base by 9.8 percent to P15.6 billion, while capital adequacy and CET 1 stood at 17.1 percent and 14.6 percent, respectively, above the regulatory minimum for a universal bank.