Tycoon Lucio Tan-led Philippine National Bank grew its net profit last year by 14.6 percent to P8.16 billion on the back of a double-digit expansion in interest and fee-based earnings and higher values unlocked from idle asset sale.
Net interest income rose by 13 percent to P22.1 billion from year-ago level, driven mainly by the 17-percent expansion in its loan portfolio to P502.1 billion, the bank disclosed to the Philippine Stock Exchange.
Net service fees and commission income rose by 16 percent to P3.1 billion, fueled by growth in loan- and deposit-related services and improved investment banking fees.
PNB also booked higher net gains on disposal of foreclosed properties amounting to P3.9 billion in 2017 versus P2.5 billion a year ago. This is in line with the bank’s strategy of paring nonearning assets.
Trading and foreign exchange gains, however, stood at P2.23 billion, lower by 22 percent from the previous year.
On the funding side, total deposits increased by 12 percent to P637.9 billion from a year ago.
Operating expenses, excluding provisions for impairment and credit losses, increased by 7 percent over the same period last year.
PNB ended last year with total consolidated resources of P836.2 billion, 11 percent higher than last year’s level.
As of end-2017, PNB operated a total of 692 branches and 1,243 automated teller machines (ATMs) located nationwide. The 102-year-old bank also maintained its position as the Philippine bank with the most extensive international footprint with 72 overseas branches, representative offices, remittance centers and subsidiaries across Asia, Europe, the Middle East and North America. —DORIS DUMLAO-ABADILLA