BBS losses widen
Mbongeni Mguni | Thursday October 8, 2026 13:44
As competition for deposits remained stiff in the banking sector, BBS Limited saw its interest expense rise more than 47%, eating into returns at a time when the bank slowed down its credit output due to weaknesses in the market. BBS Bank’s interest income rose by 7.2 percent over the same period, with executives noting “pressure on customer repayment capacity”.
The bank’s loan book declined to P4.5 billion from P4.6 billion over the same period. Net interest income for the period was P50.8 million, compared with P106.6 million reported for the period ended June 30, 2025, with executives explaining that the difference reflected lower interest income and the continued effect of high-cost deposits.
They said active run-off of selected expensive funding, together with efforts to grow lower-cost transactional deposits and risk-based pricing, is intended to support progressive margin recovery in a challenging environment.
Expected credit loss charges were P38.5 million, compared to P23.6 million in the prior corresponding period last year, with executives saying the bank had reviewed its lending criteria, increased collections capacity and strengthened early-arrears management, recoveries and portfolio monitoring.