The Philippine National Bank, the country’s 7th largest bank controlled by tycoon Lucio Tan, has reported a consolidated net income of P15.1 billion for the first nine months of 2024, marking a 12 percent increase compared to the same period last year. The growth was primarily driven by a robust rise in net interest income, which comprises 83 percent of the bank’s total operating income.
PNB’s net interest income rose by 10 percent year-on-year to P36.5 billion. Interest income was up 15 percent due to an expansion in customer loans and investments, as well as improved yields. The bank effectively managed higher interest expenses on deposits by deploying these funds into higher-yielding assets.
Francis Albalate, Chief Financial Officer of PNB, noted that the bank’s core revenues consistently increased due to enhanced policies and processes aimed at sustaining growth in core banking activities amidst ongoing economic expansion. This strategy has played a crucial role in maintaining the bank’s profitability.
In addition to net interest income, PNB reported other operating income of P4.1 billion for the January-September period. The figure was lower than last year, which included gains from the sale of foreclosed assets totaling P3.7 billion. Excluding these non-recurring gains, other operating income increased by 31 percent year-on-year, driven by trading income from strategic positioning and timely book management.
Operating expenses for the bank rose 1 percent to P21.7 billion, reflecting the growth in revenue, which led to higher business taxes and related expenses. Additionally, PNB allocated P3 billion for credit provisions to strengthen its financial position.
PNB set aside additional credit provisions of P3.7 billion during the period, lower than year-ago level as its asset quality improved.
As of September 30, the bank’s total consolidated assets stood at P1.20 trillion, two percent higher than a year-ago level, and is attributed to the increase in loans and treasury assets.
