PNB net income up 117% to P2.6B

Lucio Tan-led Philippine National Bank (PNB) more than doubled its first-quarter net income to P2.6 billion on the back of “substantial” gains in core as well as non-recurring revenues.

PNB’s end-March profit exceeded by 116.7 percent the P1.2 billion posted in the first quarter of last year.

In a disclosure to the Philippine Stock Exchange Thursday, PNB said its net interest income rose 12.4 percent year-on-year to P4.7 billion “mainly due to expansion in the loan portfolio and investment securities.”

According to PNB, its loan portfolio expanded by 18 percent during the January to March period, while the loan-to-deposit ratio improved to 71 percent from 69 percent a year ago.

In the first quarter, the bank also benefited from “favorable market conditions” such that its foreign exchange and trading gains increased by 50 percent, PNB said.

“Net gains from sale of assets also grew substantially following major disposals of foreclosed assets, in line with the bank’s continued efforts to reduce non-earning assets. Likewise, collections of non-performing assets augmented the bank’s miscellaneous income,” PNB added.

At end-March, total consolidated resources reached P699.1 billion, 12.6-percent higher year-on-year.

It also reduced its non-performing loans ratio to 0.26 percent in March from 0.64 percent last year.

As PNB celebrates its centennial anniversary this coming July, the bank said it “plans to introduce more banking ‘firsts’ to benefit new account holders, specifically in the field of digital banking.”