Philippine National Bank said Monday net income last year dropped 63 percent year-on-year to P11.6 billion, with the double-digit growth in total operating income not enough to cover the one-off gains from properties-for-shares swap booked in 2021.
PNB said the higher interest rate last year lifted earnings on interest earning assets and net inter margin, consequently increasing net interest income by 7 percent to P37.3 billion.
It said core income was up 5 percent on fee-based revenues largely coming from fees on its deposits, bancassurance and underwriting transactions.
As part of strategic initiatives to reduce low-earning assets, the bank concluded several sale transactions involving high-value foreclosed properties in 2022, which generated net gains on sale and exchange of P7.8 billion during the year, almost 8 times higher than the gains recorded in 2021.
Gains from foreign exchange transactions more than doubled to P1.6 billion, cushioning trading losses of P1.3 billion due to higher interest rate.
PNB reported one-off gains coming from the properties-for-shares swap transaction implemented in 2021, which significantly increased the prior year net income by P33.3 billion and resulted in the 63 percent drop in 2022 net income
Operating expenses posted a moderate increase of 8 percent year-on-year on account of taxes related to the property sales, as well as higher amortization costs for the leased properties of the bank where it is currently holding its operations. These properties were the subject of the properties-for-shares swap executed in 2021.
PNB gross loan portfolio settled at P613.6 billion as of end-December 2022, lower by 3 percent from prior year’s level.
“PNB improved its efficiency and profitability amidst challenging conditions and economic headwinds,” said PNB Acting President Florido Casuela. “PNB’s performance in 2022 is a good indicator that the bank continues to deliver real value to our clients, investors, and the overall economy,” he added.
