Lucio Tan. INQUIRER FILE PHOTO
MANILA, Philippines – Taipan Lucio Tan-led Philippine National Bank jacked up its first quarter net profit by 11 times year-on-year to P1.2 billion, aided by large gains in trading, foreign exchange and investment securities.
Treasury earnings accounted for 45 percent of total operating income for the period although the bank continued to strengthen its core business. The bank has beefed up its inventory of investments that are available for sale by 32 percent from the level at end-2011.
Gross interest income on loans and receivables was up by 10 percent from the same level in the previous year owing to improved volume and spreads. Net interest income improved by 2 percent year-on-year.
“The robust growth of the bank’s consumer loans and middle market portfolio provided significant buffer to temper the squeeze in spreads from large corporate loans due to stiff competition,” PNB said in a press statement on Monday.
The bank grew its loan book during the period by P3.3 billion to end March at P129.5 billion while deposit base amounted to P227.1 billion. For every peso of deposit liabilities, 52 centavos was lent out and turned into earning assets, rising from 42 centavos a year ago.
PNB also tempered its cost of funds by 16 percent year-on-year with greater focus to the generation of low-cost deposits. The bank also made a formal bid to capture the high networth segment with the launch of its private banking arm: “the PNB Pinnacle Club.”
In terms of asset quality, non-performing loans (NPL) as a ratio of the total loan book dropped to 3.2 percent from 4.2 percent in the same period last year. NPL coverage stood at 82 percent.
Capital adequacy ratio to risk assets ended at 21.7 percent compared to the 10-percent minimum regulatory requirement.
PNB’s total consolidated resources amounted to P307.9 billion.