PBB Q2 profit surges 86% to P412.8M

MANILA, Philippines — Philippine Business Bank (PBB) saw second-quarter profit surge 86.3 percent quarter on quarter as its core lending business expanded despite a challenging operating environment.

On Tuesday, the banking arm of the Zest-O Group said it booked net income of P412.8 million in the April-to-June period, a sharp sequential improvement it expects to sustain through the rest of the year.

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Net interest income reached P1.61 billion during the quarter, while interest income stood at P2.54 billion. Meanwhile, other income rose 15.5 percent quarter on quarter to P288.6 million, supported by continued expansion of PBB’s Makaguro loan product.

Pre-tax pre-provision profit increased by P49.8 million from the previous quarter to P648.5 million. Profit before tax also climbed 12.5 percent to P448.5 million.

PBB president and CEO Rolando Avante said the first half unfolded under a difficult operating environment, as the Middle East conflict pushed global oil prices higher and renewed inflationary pressures. These conditions also dampened economic activity and fueled market volatility.

“Despite these headwinds, PBB still delivered a substantial sequential improvement in earnings,” Avante said.

As a result, PBB views its second-quarter performance as a better indicator of its earnings trajectory and expects the momentum to continue through the rest of 2026.

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Amid market uncertainty, the bank prioritized capital preservation and liquidity over near-term income growth. It also reduced market risk exposure while expanding its core lending business.

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Its Makaguro loan portfolio grew 70 percent year on year as PBB continued to scale up the product. Total loans and receivables reached P123.3 billion as of end-June, up P3.9 billion from a year earlier.

Meanwhile, deposit liabilities rose by P1.2 billion to P134.7 billion, while total resources stood at P160.9 billion. Shareholders’ equity expanded by P1.4 billion to P21.5 billion, equivalent to a book value per share of P25.56 net of preferred shares. /pai