PNB’s 2022 profit down
MANILA, Philippines Billionaire Lucio Tan’s Philippine National Bank (PNB) saw lower profits in 2022 due to the absence of windfall one-time gains the previous year while core interest earnings and profit margins grew.
PNB said in a statement on Monday net income last year was lower by 63 percent to P11.6 billion.
“In 2021, the bank reported a one-off gain coming from the properties-for-shares swap transaction implemented that year, which significantly increased the prior year net income by P33.3 billion,” PNB said.
The company’s underlying business remained strong, with net interest income rising to P37.3 billion, up 7 percent. PNB ended the year with a net interest margin of 3.61 percent versus 3.27 percent in 2021.
Moreover, credit provision expenses fell by 44 percent due to “improvements in payment and credit status in 2022 of certain large exposures of the bank.”
Fee-based income also increased 5 percent while the lender disposed of foreclosed assets, generating net gains of P7.8 billion last year or an annual growth of 8 percent.
PNB also booked P1.6 billion in foreign transaction gains, up 116 percent. Trading losses, however, ended at P1.3 billion for the year.
“PNB improved its efficiency and profitability amidst challenging conditions and economic headwinds,” PNB acting president Florido Casuela said in a statement on Monday.
“PNB’s performance in 2022 is a good indicator that the bank continues to deliver real value to our clients, investors, and the overall economy,” he added.
Meanwhile, the bank’s gross loans shed 3 percent to P613.6 billion as it reorganized its portfolio.
PNB explained the drop was due to the “fast-track collection of short-term loans with minimal profitability and redirect new loan grants to essential sectors that thrive in the new norm.”
The bank’s deposits also dipped 3 percent as it trimmed down time deposits that pay higher interest rates.
“However, this decline was tempered by the continued build-up of the bank’s current and savings deposits, which together grew by 4 percent year-on-year,” PNB said.
PNB ended 2022 with total assets of P1.5 trillion, down 4 percent.
It said equity as of December increased 5 percent, bringing its capital adequacy ratio to 15.38 percent and common tier 1 ratio to 14.58 percent.
