Lucio Co’s PBCom posts 17% hike in Q1 profit

Philippine Bank of Communications

Philippine Bank of Communications, the banking concern of bilyonaryo Lucio Co, grew its net income by 17% to P448.7 million in January to March on better margins from its core lending and deposit-taking activities alongside improved operating efficiency.

Total operating income increased by 25% while net interest income went up by P341.2 million due to the decline in interest expense from lower cost of fund and lower volume.

Interest income also increased in spite of the loan payment holiday for consumer loan accounts as a result of the Bayanihan to Heal as one Act, due to growth in volume of investments and corporate loans. These made up for the decline in trading and forex gains.

Total operating expenses went up by 30% mainly because of higher provisions for losses recognized in the current period due to deterioration of the credit scores of the corporate accounts owing to the coronavirus pandemic.

As of the end of March, PBCom’s total assets declined by P2.3 billion to P100.5 billion while total liabilities dipped three percent to P91.4 billion.

PBCom said its consolidated risk-based capital adequacy ratio is 16.81% under BASEL 3 and is well above the 10% minim requirement despite the coronavirus crisis. The ratio covers credit market and operational risks for the first quarter.

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