PNB, PSBank posted record profits in 2023

MANILA, Philippines  —Two more major banks reported record earnings in 2023 on the back of higher interest rates and growth in loans.

Taipan Lucio Tan’s Philippine National Bank said net income last year surged 55 percent to P18 billion while core banking income soared 156 percent.

PNB said return on equity improved to 10 percent from the 7 percent posted a year ago.

The Ty family’s PSBank also reported a historic high net income of P4.53 billion, up 23 percent over the same period the previous year, bringing its return on equity to 11.7 percent.

PNB President Florido P. Casuela said the past year’s results were “a testament to the bank’s efforts in upholding our vision of being among the top banks in terms of customer growth and satisfaction as well as return on equity”.

During the period, PNB’s net interest margin rose to 4.2 percent in 2023 from 3.6 percent in 2022.

PNB’s total loan portfolio expanded by 5 percent to P642 billion on strong lending to the commercial accounts and small and medium-sized entities.

Trading and foreign exchange gains also grew over four times P1.8 billion “as the bank was able to capitalize on market opportunities”.

PNB also offloaded certain high-value foreclosed properties as it continues to aggressively dispose off of non-performing assets, the statement showed.

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PSBank, the thrift banking arm of Metropolitan Bank & Trust, saw net interest income grow by 7 percent to P11.83 billion in 2023.

Its gross loan portfolio also climbed by 12 percent to P125 billion, partly driven by auto loans growth of 24 percent. Its non-performing loans ratio during the past year eased to 3.3 percent from 3.5 percent.

“This significant milestone was a result of team work and steadfast commitment of PSBankers in delivering effortless banking to our clients and stakeholders,” said Jose Vicente L. Alde, the president of PSBank.

“We want to leverage on this momentum to expand our coverage, provide diversified offerings and further invest in technology to level up customer experience  in the succeeding years,” he added.