Tycoon Lucio Tan-led Philippine National Bank (PNB) posted P3.9 billion in first semester net profit, down by 27.8 percent from the previous year, when earnings included one-time gain from the sale of foreclosed assets.
“Excluding the impact of nonrecurring earnings from the sale of foreclosed assets [in 2018], the bank’s core net income grew by 45 percent,” PNB president and CEO Wick Veloso said in a disclosure to the Philippine Stock Exchange.
“The growth came from the sustained momentum of the core lending, investment, and deposit-taking activities as the Philippine economy continued its growth trajectory,” he said.
PNB’s net interest income—which accounted for 77 percent of total operating income—rose by 13 percent year-on-year in the first six months to P14.7 billion as the bank expanded its earning assets.
Its loan book grew by 13 percent year-on-year to P594.1 billion, driven by the double-digit growth in loans to commercial and small and medium enterprise segments.
“The strong growth is an indication that the various strategic initiatives we have put in place are gaining traction in this fast-moving economy. We have the momentum and are excited to unlock the significant revenue contribution of the forthcoming integration of PNB Savings Bank into PNB,” Veloso said.
Net service fees and commissions rose by 11 percent.
PNB also benefited from the substantial improvements in trading gains, which reached P968 million compared to a meager P98 million in the previous year.
Operating expenses, excluding provisions for impairment and credit losses, were up by 11 percent in the first semester from the same period last year as robust revenue streams translated to higher business taxes and other business-related expenses.
Its deposit base grew by 15 percent year-on-year to P775.1 billion. —DORIS DUMLAO-ABADILLA