The Philippine National Bank registered consolidated net income of P13.5 billion in the first nine months this year, 19 percent higher compared to the same period last year. The stronger performance was attributed to growth in the bank’s core lending and fee-based operations.
The bank’s net interest income rose by 23 percent to P33 billion from year-ago level of P26.8 billion, driven by higher loan volume coupled with improving net interest margin of 4.2 percent versus last year’s 3.4 percent.
Gross loans amounted to P635 billion as of end-September 2023, up 4 percent from end-December 2022 level on the back of the bank’s sustained growth in corporate loans and expanded reach to the commercial and retail lending spaces.
Deposit liabilities, on the other hand, increased 5 percent as the bank continued to build up its CASA portfolio while offering other deposit products with competitive rates. Net fee-based income likewise grew 21 percent year-on-year, buoyed by higher volumes of lending and deposit-related transactions.
Despite the limited trading opportunities and market liquidity, the bank managed to improve its treasury-related income by 36 percent as it took advantage of the rate movements in the market during the period. The bank also continued its strategy of disposing and monetizing foreclosed properties in the first nine months, albeit lower than gains posted a year ago.
The bank’s operating expenses amounted to P21.4 billion over nine months this year, a 4 percent reduction year-on-year due to prudent spending despite continued business growth. Also, the bank continued to set aside additional provisions of P5.2 billion given the prevailing uncertainties this year.
As of end-September, the bank’s consolidated assets stood at P1.18 trillion, up 3 percent from end-December 2022 level, primarily driven by higher loans and investment securities. The bank’s total equity also expanded 10 percent year-on-year, bringing its capital adequacy ratio to 16.6 percent and common equity Tier 1 ratio to 15.7 percent, both well above the minimum regulatory requirement of 10 percent.
“We continue to be focused on sustaining our profitability while enhancing our efficiencies,” said PNB president Florido P. Casuela. “We aim to be responsive to the needs of our customers and help them achieve their financial and business goals as our economy continues to recover.”
