PHILIPPINE NATIONAL BANK’S (PNB) consolidated net income rose by 14.77% year on year in the first quarter on the back of its core businesses’ strength.
The bank booked net earnings of P6.09 billion in the three months ended March, up from P5.31 billion in the same period last year, it said in a disclosure to the stock exchange on Monday.
“The first-quarter financial results this year reflect the strength of PNB’s franchise in its wholesale and retail businesses. Excluding the impact of non-recurring gains from the sale of foreclosed assets, the growth in the bank’s core income continued to drive the bank’s earnings momentum,” PNB President Florido P. Casuela said.
“We expect that the quality of the bank’s earnings will further improve since we have already put in place the necessary foundation for the bank’s sustained stability and accelerated growth.”
Its financial statement was unavailable as of press time.
PNB’s core income increased by 9.81% to P14.14 billion from P12.88 billion.
Broken down, net interest income grew by 8.74% to P12.71 billion in the first quarter from P11.69 billion in the same period last year.
“This is mainly due to the combined effect of the increase in the bank’s loan portfolio and treasury assets,” PNB said.
Its net service fees and commission income likewise climbed by 20.43% to P1.42 billion from P1.18 billion.
Meanwhile, the bank’s other income jumped by 62.51% to P1.93 billion in the first quarter from P1.19 billion a year prior, mainly driven by the 68.08% increase in its gains from trading, investment securities, and foreign exchange to P862.27 million from P522.33 billion.
PNB added that the sale of foreclosed properties also boosted its non-interest earnings in the period.
As a result, its total operating income went up to P16.07 billion from P14.06 billion.
Meanwhile, the bank’s operating expenses rose by 9.84% to P8.07 billion from P7.34 billion due to higher costs related to its strategy to expand its consumer business segment.
“Similarly, taxes and licenses went up as a consequence of increase in the bank’s business volume increase,” PNB added.
Provisions for impairment losses went down by 55.29% to P277.11 million last quarter from P619.76 million on “the continued improvement in the bank’s quality of its loan portfolio through enhanced credit underwriting and sound management practices.”
PNB’s net loans and receivables stood at P655.896 billion at end-March.
On the funding side, deposit liabilities were at P988.25 billion.
The bank’s assets stood at P1.28 trillion as of March, while total equity was at P218.67 billion.
PNB’s shares climbed by 1.55% or 3.46% to close at P46.30 apiece on Monday. — Aaron Michael C. Sy
