MANILA, Philippines?(UPDATE) Tycoon Lucio Tan?s Philippine National Bank doubled its net income in 2009 on the back of higher earnings from lending and treasury businesses alongside an improvement in asset quality and cost efficiency.

Citing un-audited figures, PNB disclosed on Monday that net income reached P2.2 billion last year compared to P1.1 billion in 2008.

Net interest income grew by 11 percent due to an expansion in its loan book, which was accompanied by only a modest 1 percent increase in interest expense due to an improved funding mix. Net interest margin rose by 18 percent to P7.8 billion over a year ago.

The bank's loans and receivables went up by 14 percent as it participated either as lead or co-arrangers in several corporate and public sector fund-raising deals such as in telecommunications, energy, and infrastructure industries.

Other operating income sources, like trading and investment securities gains, also significantly boosted profits in 2009. PNB chalked up P1.4 billion in net gains from trading and investment securities as an improved financial market environment boosted the mark-to-market valuation of securities held for investment.