Philippine Business Bank of bilyonaryo Alfredo Yao is aiming to raise as much as P3 billion in equity capital to allow it to seize market opportunities once the country recovers from the pandemic.
In a statement, PBB said proceeds from the fund-raising program will be used to fund general corporate requirements and expand risk assets.
“Raising capital today will position PBB to exploit market opportunities as the economic recovery unfolds and help cushion the bank from the uncertainties of the pandemic,” said Roland Avante, vice chairman, president and CEO.
PBB reported a 59.4 percent drop in its first quarter earnings to P160.2 million, weighed down by mark-to-market trading losses.
Avante sad the trading activities this year were affected by inflation concerns that pushed yields higher both for peso and dollar denominated instruments.
Interest income declined by 17.8 percent to P1.58 billion while core earnings grew to P725.2 million from P693.6 million.
Total loans and receivables reached ₱87.9 billion while total resources stood at ₱119.2 billion.
Low-cost deposits increased by 25.3 percent while time deposits reached ₱46.7 billion.
“The business environment continues to remain challenging given the effects of the pandemic. Nevertheless,PBB continuesto strengthen its core businesswhilemanaging its risk assets.The Bank continues to regularly and closely monitor our asset quality, and our account management teams are working with our clients to ensure that we are able to provide assistance in this difficult time,” Avante said.