PNB profit hits P7.15B in ’16

Tycoon Lucio Tan-led Philippine National Bank (PNB) boosted its net profit last year by 17 percent to P7.15 billion as steady improvement in its core income was supplemented by nonrecurring 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 and the redemption of P6.5-billion tier 2 debt notes in June 2016.

Trading and foreign exchange gains also surged by 61 percent as the bank benefited from growth in transaction volumes and favorable market conditions.

A significant increase in net gains from the sale of foreclosed assets was likewise reported, highlighting the bank’s continued effort to reduce nonearning 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.

Operating expenses were kept at a minimum, growing only by a single digit.

“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,” said Reynaldo Maclang, PNB president.