President’s Report on Operations

Andrei D. Cornejo Jr.

President & Chief Operating Officer

30 Years of Producers Bank

The year 2025 marks a defining milestone in the history of Producers Savings Bank Corporation as we celebrate three decades of meaningful service, sustainable growth, and commitment to nation-building.

“The secret of change is to focus all of your energy, not on fighting the old, but on building the new.” — Socrates

Thirty years ago, Producers Bank was founded on a clear vision: “To be the no. 1 partner bank of farmers and entrepreneurs in producing more wealth for the country.” Today, as I present our accomplishments for the year ended December 31, 2025, I am proud to affirm that we have remained faithful to that mission while building a stronger, more resilient, and future-ready institution.

Amid evolving market conditions and a rapidly transforming banking landscape, Producers Bank continued to move forward with discipline, stability, and confidence. Our growth in 2025 reflects not only strong financial performance, but also the collective dedication of our people, the enduring trust of our clients, and the strategic direction that continues to guide our organization toward long-term success.

Producers Bank continued to demonstrate financial strength and institutional stability throughout 2025, delivering another year of solid and sustainable growth.

In 2025, Producers Bank recorded a net income of PhP1.54 billion, representing an 18.13% increase from the previous year. This strong performance was driven by sustained expansion in our lending business, alongside the successful diversification of our products and services.

These results translated into a Return on Equity (ROE) of 21.37% and a Return on Assets (ROA) of 3.68% — clear indicators of the Bank’s ability to generate value while maintaining prudent financial management.

Our capital position strengthened significantly in 2025, reaching PhP8.10 billion and remaining well above the regulatory minimum prescribed by the Bangko Sentral ng Pilipinas. This achievement reflects the Bank’s disciplined capital management framework, supported by sustained profitability, strategic reinvestments, and sound balance sheet management.

Producers Bank’s total resources reached PhP47.78 billion by the end of 2025, an increase of PhP7.18 billion, or 17.69%, year-over-year — reflecting sound investment strategies, efficient asset and risk management, geographic expansion, and heightened operational efficiency.

Driven by an expanded customer base, targeted branch marketing, and an enhanced customer experience, the Bank’s loan portfolio grew to PhP30.64 billion — a 15% increase (PhP4.00 billion) over the previous year’s PhP26.63 billion.

Deposit generation was heavily driven by cross-selling initiatives and deepened customer relationships. Reflecting strong public trust in the institution’s stability, deposits grew by 9.97% year-over-year, rising to ₱29.82 billion from ₱27.12 billion.

Expanding our physical presence remains a key pillar of our long-term growth strategy. In 2025, Producers Bank successfully opened twelve new organic branches while simultaneously pursuing strategic acquisitions to strengthen our presence in underserved and high-potential regional markets.

The acquisition of Rural Bank of Pola (Oriental Mindoro), Inc. further accelerated our expansion across the MIMAROPA and Bicol regions, enabling the Bank to deepen its reach and better serve local communities.

As of December 31, 2025, the total branch network of Producers Bank stood at three hundred (300) branches spread over eighteen (18) regions and fifty-four (54) provinces in the country.

The formal launch of the Bank’s credit card business marked another important milestone in our digital transformation journey.

As customer expectations continue to evolve, Producers Bank remains committed to delivering accessible, secure, and technology-driven financial solutions. Our continued investments in electronic banking, ATM expansion, online platforms, remittance services, and agency banking underscore our commitment to providing seamless banking experiences for both individuals and businesses nationwide.

As an Accredited Rural Financial Institution (ARFI) under the Bangko Sentral ng Pilipinas (BSP), Producers Bank is authorized to accept deposits and investments from universal and commercial banks seeking to fulfill their mandatory agriculture and agrarian (“agri-agra”) lending requirements.

In 2025, Producers Bank supported 115 depositor banks in meeting their compliance obligations under Republic Act No. 11901 (The Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022) through its Special Time Deposit Account for Banks. RA 11901 aims to boost private sector financing for rural communities by expanding eligible bank compliance methods.

Additionally, it establishes a special fund — overseen by the Agricultural and Fisheries Finance and Capacity-Building Council — dedicated to funding institutional development and capacity-building programs for rural farming and fishing households.

As of December 31, 2025, Producers Bank’s total workforce stood at 2,396 employees. This roster included 571 new hires onboarded during the year to support new branch openings, recent mergers, and expanded operations across existing branches.

Throughout 2025, the Human Resources Management Department (HRMD) prioritized fostering a culture of excellence. The department implemented continuous training and development programs designed to sharpen employee competencies, while simultaneously launching initiatives to instill the Bank’s core values: integrity, competence, professionalism, and customer-centricity.

Adopting a human-centric approach, HRMD focused on delivering services that make employees feel valued and supported, ensuring their needs and concerns were effectively addressed. Concurrently, HRMD protected the Bank’s interests by maintaining an impartial balance between management and staff, while strictly adhering to government regulatory standards.

Producers Bank continues to demonstrate outstanding performance within the thrift bank industry. A comparative summary at year-end highlights that the Bank outperforms industry averages across the majority of key financial metrics. In the limited areas where variances exist, they remain marginal and insignificant. Overall, Producers Bank concludes 2025 in a highly stable and sound financial position.

Presented below are the Bank’s performance ratios as of December 31, 2025 vis-à-vis the TB System ratios.

Producers Bank continued to outperform industry benchmarks across most major financial indicators, reflecting the effectiveness of our business strategy and the strength of our operating fundamentals.

This performance was further affirmed by the recognition conferred upon Producers Bank by the Land Bank of the Philippines, which named us the Most Outstanding Thrift Bank among its countryside financial institution partners during the 2025 Gawad Tanyag Awards.

We accept this recognition not merely as an award, but as a reaffirmation of our mission to serve communities, support economic development, and contribute meaningfully to the Philippine banking sector.

These remarkable milestones were made possible by the collective dedication and teamwork demonstrated across all levels of our operations in 2025, with every team member working in alignment with the Bank’s vision. We extend our deepest gratitude to the following pillars of our success:

As we move beyond our 30th year, we do so with clarity of purpose and confidence in the future.

Producers Bank will continue to pursue responsible expansion, strengthen its digital capabilities, deepen customer relationships, and uphold the highest standards of governance and service excellence.

With the unwavering support of our shareholders, Board of Directors, management team, employees, clients, and partners, we remain fully committed to building a stronger institution that creates enduring value for generations to come.

Together, we look ahead with optimism and determination toward an even more promising future for Producers Bank.

Thank you, and congratulations to all of us.