Philippine Business Bank of Zest-O founder Alfredo Yao, reported a 25% drop in net income last year to P938.9 million on larger provisions for probable loan losses given a tough business environment caused by the Covid-19 pandemic.
PBB set aside P2.33 billion for loan loss provisions, more than four times the P561.2 million buffer booked in 2019.
Core earnings jumped 41.9 percent to P2.78 billion while trading gains more than doubled to ₱749.3 million.
“In spite of the difficulties posed by the COVID-19 pandemic,PBB was able to grow its core business,” said Rolando Avante, bank chairman and president.
Total loans and receivables rose to₱89.3billion while resources went up to ₱119.8billion.
Deposit liabilities increased to ₱100.4 billion. Current and savings deposits grew 14.6%, while time deposits reached ₱50.4 billion.
“2020 would have been a great year as evidenced by our cash earnings via core income. Nevertheless,PBB took necessary steps to manage risks by adhering to proven lending and account management processes and procedures.
Strengthened collection policies, restructuringprograms,and the usualfocus on deepening relationships with our SME clients continue to be our primary objectives.We also plan to continue to improve our deposit mix, in anticipation of a tightening margin environment in the core interest differential business,” said Roland Avante, vice chairman and CEO of PBB.
