In spite of the pronounced slowdown in worldwide economic activities in 2008, the Philippine banking industry continued to exhibit adequate strength and resiliency as shown in the expansion in assets, deposits and other balance sheet components, mostly from the commercial and universal banks.

The Savings banking industry, however, recorded a slight decline in aggregate resources in 2008 from its level achieved in 2007.

The Philippine Business Bank (PBB), one of the biggest savings bank in the country today, experienced modest gains with new and exciting changes that somehow altered its financial landscape in preparation for the future corporate developments.

The Philippine Business Bank (PBB), one of the biggest savings bank in the country today, experienced modest gains with new and exciting changes that somehow altered its financial landscape in preparation for the future corporate developments.

With this as a backdrop, total resources of the Philippine Business Bank (PBB) in 2008, including its trust assets, amounted to P 14.000 billion. Gains during the year were mostly reflective of the significant increase in trust placements. Noteworthy during the year was the steady climb in Trust Asset placements as the market gradually shifted its preference to higher yields particularly offered by the Bank’s Trust Banking unit vis-à-vis the traditional deposits. Trust placements recorded a remarkable increase of P742 Million in 2008 as it stood at P 1.055 Billion compared to modest aggregate of P 312.533 Million registered in 2007.

During the year, the traditional deposits recorded a total of P 10.383 Billion. Among its major deposits components, Time and Demand deposits posted record growths as it reached year-end levels amounting to P 4.034 Billion and P 0.197 Billion, respectively.

Meanwhile, the shift in investors’ preference can be gleaned in the downward swing in Savings deposits from P 8.996 Billion in 2007 to P 6.151 Billion in 2008 to placements whose yield are economically higher.

The Bank’s loan portfolio, which continued to effectively serve the leading requirements of its niche market stood comfortably at P 8.684 Billion. Guided by the bank’s conservative lending stance, the Bank was able to generate wider and more profitable loan exposures. PBB intensified its interest strategies and adopted more flexibility in facing the ever-changing needs of its market.Fortunately, this stance emerged to be a wise moved for the Bank in ensuring that all of its earning assets enjoy the best deal in the market 

while at the same time, maintaining adequate competitiveness level in the loan market section of the industry and providing adequate cushion against potential credit losses.

PBB remained to be a Leader in the interbank market, with an average placement of P 1.990 Billion year-round and a liquidity buffer of more than P 2.00 Billion in the form of cash and government securities on any given day throughout the year.

PBB’s products and services were regularly reviewed to confront the stiff competition in the savings bank industry. Interest rates, in particular, were updated to be more competitive and lending activities were done on a more cautious and selective basis.The build-up in capital funds resulted in a total of P 1.33 Billion from P 1.238 Billion from its year – ago level. The said amount is more than double the capital requirement of P 650 Million set by the Bangko Sentral ng Pilipinas on the savings banking sector.

Net earnings of the Bank in 2008 rose significantly to P 186.2 Million or a  P 23.5 Million improvement from the earnings attained in 2007 amounting to P 162.7 Million. This earned for the Bank a Return on Investment rate of 14.48% one of the highest in the Savings banking sector. The Bank’s interest income amounted P 918 Million while other income of P 161 Million were derived mostly from trading gains, FX revaluations, RCOCI charges and penalties on loans. This was achieved albeit the very stiff competition encountered even from banks which are bigger in terms of resources and capacities.