PBCom profit up 587% to $16bn

Bigger gains in trading and lower funding costs boosted the bank’s profit.

The Philippine Bank of Communications’ (PBCom) net income surged by 586.81% last year on the back of gains from securities trading.

In a disclosure to the stock exchange yesterday, the bank reported its net profit for 2010 reached P 701.869 billion ($15.98 billion), more than six times higher than the P 102.193 million ($2.33 million) notched in 2009.

“The bank’s net income was driven by bigger trading gains coupled with lower funding costs,” explained PBCom First Vice-President Raul C. Diaz in a text message to BusinessWorld.

The bank’ trading gains amounted to P507.041 million ($11.54 million), up by 325% from the previous year’s P119.185 million ($2.71 million).

Its net interest income rose by 16.22% to P 1.52 billion ($34.60 million) last year from P 1.306 billion ($29.73 million) in 2009.

Service charges, fees and commissions, however, fell to P135.578 million ($3.09 million) from P148 million ($3.37 million). Income from trust operations followed the same trend, falling to P13.451 million ($306,226) from P15.21 million ($346,304).

View the full story in Business World.