PHILIPPINE Business Bank (PBB) posted a sharp rebound in second-quarter earnings as stronger lending activity and other income helped lift net income to P412.8 million, more than double the bank’s entire first-half profit of P187.5 million a year earlier.
In a disclosure on Tuesday, the bank said net income in the April-to-June period jumped 86.3 percent from the previous quarter, while net interest income reached P1.61 billion.
Other income also rose 15.5 percent quarter on quarter to P288.6 million, supported by continued growth in the bank’s Makaguro loan product, a loan facility extended to eligible and permanent teaching and nonteaching personnel of the Department of Education via the bank’s automatic payroll deduction system.
Pre-tax pre-provision profit increased P49.8 million from the previous quarter to P648.5 million, while profit before tax rose 12.5 percent to P448.5 million.
The bank’s loans and other receivables reached P123.3 billion as of end-June, up P3.9 billion from a year earlier. Total deposits also grew P1.2 billion year on year to P134.7 billion.
President and CEO Rolando Avante noted that the bank’s performance was achieved despite a difficult operating environment.
“The first half of 2026 presented a challenging operating environment for all businesses. The conflict in the Middle East drove global oil prices higher, resulting in renewed inflationary pressures, dampened economic activities, and increased volatility across financial markets,” Avante said.
“Despite these headwinds, PBB still delivered a substantial sequential improvement in earnings,” he noted.
The bank said it prioritized capital preservation and liquidity amid market uncertainty while continuing to expand its core lending operations.
It said its Makaguro loan portfolio grew 70 percent from a year earlier, reflecting efforts to expand its lending business.
Total resources stood at P160.9 billion at the end of June, while shareholders’ equity increased P1.4 billion year-on-year to P21.5 billion.
PBB’s capital adequacy ratio was 13.30 percent and its minimum liquidity ratio stood at 23.27 percent at the end of the first half, above the Bangko Sentral ng Pilipinas’ minimum regulatory requirements of 10 percent and 20 percent, respectively.
The bank said it expects to sustain the positive earnings momentum through the rest of the year while maintaining a prudent approach to capital and liquidity, aside from strengthening its core lending business and maintaining adequate provisioning against emerging risks.
The bank on Tuesday saw its shares rise P0.09, or 1.30 percent, to close at P7.00 each.
