Philippine Business Bank, Inc., A Savings Bank (PBB), a listed savings bank on the Philippine Stock Exchange (PSE: PBB), reported a net income of P412.8 million for the second quarter, according to a disclosure filed with the stock exchange on Tuesday. The bank's detailed financial statement was unavailable as of press time.

On a quarter-on-quarter basis, net income surged by 86.3%. Pre-tax and pre-provision profit — comprising net revenues less non-interest expenses — reached P648.5 million during the three-month period.

PBB President and Chief Executive Officer Ronaldo R. Avante noted the broader economic backdrop: "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."

"Despite these headwinds, PBB still delivered a substantial sequential improvement in earnings," Mr. Avante added. "PBB views the second-quarter results as a better indication of the bank's earnings performance and expects the momentum to continue through the rest of 2026."

The bank's net interest income stood at P1.61 billion for the second quarter, with gross interest earnings of P2.536 billion. Other income — which includes service charges, fees, commissions, and miscellaneous income but excludes trading losses — amounted to P288.6 million in the three months ended June.

PBB's total loan portfolio reached P123.3 billion as of end-June, an increase of P3.9 billion from a year earlier.

"The Makaguro loan portfolio expanded by 70% versus its levels a year ago, reflective of the bank's continued efforts to expand its Makaguro lending business," Mr. Avante said. "PBB also remained closely engaged with its clients, working with them to address their evolving financing requirements while proactively managing credit exposures and preserving asset quality."

On the funding side, total deposits reached P134.7 billion. The bank's total resources stood at P160.9 billion at end-June, while total equity reached P21.5 billion.

PBB's capital adequacy ratio was 13.3% and its liquidity ratio stood at 23.27%, both exceeding the minimum regulatory requirements of 10% and 20%, respectively, set by the Bangko Sentral ng Pilipinas (BSP) under Basel III standards for the Philippine banking system.

"Given the prevailing economic and market uncertainty, PBB focused on fortifying its balance sheet by prioritizing capital preservation and liquidity over near-term income growth. The bank reduced its market risk exposure amidst volatile trading conditions while continuing to grow its core lending business," Mr. Avante said.

"The bank aims to sustain the positive earnings momentum recorded in the second quarter through the remainder of 2026 while maintaining a prudent and measured approach to capital and liquidity. PBB will continue to strengthen its core lending business and maintain adequate provisioning against emerging risks," he added. "These measures will lay the groundwork for stronger performance in 2027 and place the bank in a better position to pursue growth opportunities as economic conditions improve."

PBB shares rose by nine centavos, or 1.3%, to close at P7 apiece on Tuesday. — Aaron Michael C. Sy