PNB registers 8% drop in net income

Philippine National Bank (PNB) posted lower profits from January to September due to a slowdown in gains from trading and investments.

Lucio Tan’s PNB, the country’s fifth-largest bank, reported that its net income during the nine-month period declined 8 percent to P2.3 billion from a year earlier.

Interest income increased by P200 million to P9.5 billion in the first nine months from the P9.3 billion reported in the same period last year. Interest expense was slightly up at P3.9 billion from that of last year due to an increase in the average daily balance of deposit liabilities.

Income from service fees and commissions was slightly lower at P1.6 billion from last year’s P1.7 billion.

Miscellaneous income also decreased from P2.4 billion to P1.7 billion this year. Foreign exchange net gains went up by P3 million.

The company said its asset base grew 5.5 percent year on year to P318.7 billion as of end-September.

“The growth in resources was funded by an increase in deposits and proceeds from the issuance of P6.5 billion in unsecured subordinated notes eligible as Tier 2 Capital [last] June,” the bank said.