PNB nets P7.1B

Tycoon Lucio Tan-led Philippine National Bank grew net profit last year by 17 percent to P7.15 billion as steady improvement in core income was supplemented by non-recurring revenues.

The bank’s net interest income grew by 11 percent last year to P19.6 billion, accounting for nearly two-thirds of total operating income. Net interest margin was maintained at 3.2 percent as the decline in asset yields was compensated by the 12 percent growth in low-cost deposits combined with the redemption of its P6.5 billion tier 2 debt notes in June 2016.

A double-digit growth in its non-interest income also boosted PNB’s profit last year. Trading and foreign exchange gains surged by 61 percent as the bank benefited from growth in transaction volumes and favorable market conditions.

Significant increase in net gains from sale of foreclosed assets was likewise reported, highlighting the bank’s continued efforts to reduce non-earning assets. Higher miscellaneous income augmented revenues primarily from a one-time gain from the sale of the bank’s 51 percent stake in its life insurance subsidiary.

On the other hand, operating expenses were kept at single-digit growth, excluding the expenses incurred for the bank’s migration to a more secured EMV chip for its ATM and POS terminals, debits, and credit cards, and the successful thematic marketing campaign.

“PNB’s healthy financials is the result of our continuing efforts to enhance our core business,” said Reynaldo Maclang, PNB President. “A robust loans business and strong trading gains contributed to the bank’s sustained growth. The bank’s various business sectors played key roles in helping PNB keep its position as one of the country’s top private universal banks. We owe our success to the continued trust and support of our clients and business partners.”