Philippine National Bank said Monday its net profit last year surged 55 percent to P18 billion on strong growth in net interest income and lower credit provisions.
Return on equity last year rose to 10 percent from 7 percent in 2022.
PNB said its net interest margin widened to 4.2 percent last year compared to the 3.6 percent in the previous year, as the Bank continued its focus on the efficient deployment of funds. Total loans increased 5 percent to P642 billion as the bank expanded its lending to the commercial sector and small and medium-sized entities.
The bank said it also continued to build up its current and savings accounts deposits, growing by 4 percent year-on-year, and accounting for 83 percent of the lender’s total deposits last year.
Trading and foreign exchange gains ballooned 4 times at P1.8 billion as PNB was able to capitalize on market opportunities, despite the limited market liquidity and rising interest rate environment in 2023.
PNB said it also offloaded certain high-value foreclosed properties as it continues to aggressively dispose off of nonperforming assets. The healthier performance in 2023 was augmented by lower provisions on distressed loans and other credit assets as the market continued to rebound from the ill-effects of the pandemic.
Operating expenses remained flat at P28.4 billion in 2023 due to prudent spending despite the continued business growth. As a result, cost efficiency ratio improved to 50 percent from last year’s 54 percent.
Total assets stood at P1.2 trillion, increasing by 6 percent from 2022 on higher loans and investment portfolio. Meanwhile, capital rose 13 percent to P191 billion, resulting in stronger Common Equity Tier 1 Ratio and Capital Adequacy Ratio of 16.85 percent and 17.7 percent, respectively.
“Our performance for 2023 is a testament to the bank’s efforts in upholding our vision of being among the top banks in terms of customer growth and satisfaction as well as return on equity,” said PNB president Florido P. Casuela.
“We have made it our mission to promote financial prosperity for all Filipinos and their businesses, locally and internationally. Apart from providing financial solutions to our customers, we have made it our purpose to empower them by helping build a competitive, inclusive, and sustainable economy,” he added.
