PNB reports P118-M Oct net income

Philippine National Bank reported a net income of P118 million for the month of October. Interest income increased to almost P1.1 billion, an amount higher than the January to September 2000 monthly average of P980 million. Net interest margin for the month rose to P236 million exceeding the nine month average of P93 million.

The substantial October earnings were attributed to intensified loan collection efforts and sale of acquired assets. Operating expense was about 10 percent lower than last year’s level as the cost rationalization measures taken by the new management began to bear fruit thus, boosting the bank’s bottom line figures.

PNB president Feliciano L. Miranda Jr. said in a statement that management’s thrusts to strengthen the bank’s operational capabilities and streamline costs is now starting to show positive results and will most likely display its full potentials next year once all the measures included in its eight-point program designed to turn the bank around has been fully implemented.

"The start of PNB’s resurgence may be at hand with a favorable net profit performance of the bank for the month of October," he further added.

The eight-point program include: a concentration of effort to trim down its NPL level; aggressive disposal of its ROPOA; cut down of operating expenses; a realignment of its lending activities to SMEs; the elimination of political loans; retraining of its personnel; implementation of an active and continuing deposit and remittance campaign; and infusion of new capital.