PNB’s six-month net profit up 12%

TYCOON Lucio Tan-led Philippine National Bank grew its first semester net profit by 12 percent year-on-year to P3.5 billion on the back of higher interest earnings, fee-based earnings and proceeds from asset sale.

For the second quarter alone, net profit rose by 26 percent year-on-year to P2.36 billion, the bank reported to the Philippine Stock Exchange on Tuesday.

These profit numbers refer to net profit attributable to equity holders of parent firm and exclude earnings attributable to minority.

In a press statement, PNB said the strong performance during the quarter was driven by the sustained growth in the bank’s core business as net interest income increased by 10 percent year-on-year while fee- based and other income excluding treasury-related income rose by 19 percent.

For the six-month period, net interest income comprised 65 percent of total operating income, rising by 2.5 percent year-on-year to P8.7 billion. If not for the redemption of non-performing assets in 2014, PNB said core net interest income had actually grown by 11 percent.

Excluding trading and foreign exchange gains which slowed down during the period, six-month non-interest income was up by 20 percent year-on-year, in turn attributed to increases in net insurance premiums and gains from sale of assets.

Among non-recurring items included the sale of P1 billion worth of Heritage Park memorial lot inventory to STI Group’s pre-need affiliate PhilPlans First Inc.

On the other hand, six-month trading and investment securities gains shrunk by 69 percent year-on-year to P382.3 million while foreign exchange gains likewise dropped by 24.6 percent year-on-year to P579.5 million.

Meanwhile, the bank said the 36 percent improvement in the net profits of its subsidiaries also contributed to the strong first semester performance.