Philippine Business Bank (PBB) received a PRS Aa credit rating with a stable outlook from the Philippine Rating Services Corp. (PhilRatings).
“The Issuer Credit Rating takes into account PBB’s above satisfactory asset quality, funding profile, and continued positive operating results, amid the community quarantine and pandemic, supporting expectations that the bank’s financial performance will remain more than satisfactory, at least in the short-term period,” the Yao-led bank said in a disclosure on Wednesday.
In addition, PhilRatings also considered the bank’s target market—the small and medium enterprises. The said sector is currently dealing with the challenges brought about by the economic uncertainty amid the coronavirus pandemic.
A PRS Aa rating means the firm has a strong capacity to meet its financial commitments. Meanwhile, a stable outlook means that the rating is likely to remain unchanged in the next 12 months.
PBB saw its net income rise by 37.2 percent to P794.9 million in the first semester from last year’s P578.9 million despite the challenging market conditions. It allocated P550 million in loan loss reserves in the first half, higher than the P150 million earmarked in the same period last year.