PHILIPPINE Business Bank (PBB) posted sharp decline in first-quarter earnings as gains in core operations were offset by higher provisions and other cost pressures amid a difficult operating environment.
In a disclosure, the bank said net income fell to P221.6 million in the January-to-March period, from P590 million last year.
“Reported net income was weighed down by mark-to-market trading losses caused by the surge in yields brought about by the Middle East war,” the bank said.
Core income, however, rose to P895.3 million, supported by steady growth in its lending activities.
Interest income reached P2.88 billion, while net interest income stood at P1.88 billion.
“The outlook for 2026 was drastically upended by the flare-up of hostilities in the Middle East. This major global disruption heightened macroeconomic risks, elevated oil prices, and increased inflationary pressure,” the bank said.
“With this backdrop, the year ahead looks to be an uphill landscape for the banking industry,” it added.
Total loans and receivables reached P122.8 billion as of end-March.
Total resources stood at P160.8 billion, while deposit liabilities grew to P131 billion.
“For the rest of the year, the bank will continue its strategy of margin-driven growth, focusing on commercial relationship quality and growing our higher-margin consumer business,” it said.
PBB said it would continue improving services for commercial clients and grow its deposit base.
“Client relationships have always been one of PBB’s core strengths,” Vice Chairman, President and CEO Rolando Avante said.
“The bank continues to work hand-in-hand with its clients by providing banking solutions that support their business requirements,” he added.
PBB’s share price rose by seven centavos to close at P7.32 apiece on Wednesday.
