The bank posted a net loss of P1.1 billion in 2001.
In a statement, PNB said the full-year figure came in better than expected and was lower than its target of a P3.1-billion net loss for 2002.
"The improved performance was due to significant headway made by the bank in implementing various revenue generating and cost-cutting initiatives during the past seven months," it said.
The Philippine National Bank (PNB) registered a net loss of P1.9 billion last year better than the P4.1 billion it experienced in 2001.
The better-than-experienced performance last year was buoyed by sales P767 million worth of real and other properties owned and acquired (ROPOA). Furthermore, the bank’s total non-performing loans (NPLs) was reduced to P10 billion from P54 billion at the start of the year.
Likewise, the bank registered earnings from fee-based and treasury operations of P1.6 billion.
PNB also earned a huge chunk from its remittance business last year. It leveraged on its extensive distribution network of 82 overseas offices and remittance center to generate gross earnings of $12.8 million, eight percent better than in 2001.
In a press statement, the bank said it reduced its operational expenses by P650 million while it boosted its loan-loss provisioning by around P500 million.
The bank also hopes to make some headway in its effort to recover the P8 billion debt of the National Steel Corp. (NSC) and another P4 billion from Citra Metro Manila Toll-ways Corp.
PNB president Lorenzo V. Tan earlier said the Citra is a simple case of restructuring the letter of credit (L/C) utilized as collateral. The NSC case is more complex.
The NSC would first have to form a special purpose asset vehicle (SPAV) group that would enable creditors including the PNB to convert part of their loans into equity. Both the creditors and majority shareholders will own the SPAV under an 80-to-20-percent equity sharing.
The restructuring of some of its NPLs in first quarter could reduce its total losses by another P2.9 to P3 billion for the whole of 2003. That figure was also the original target of losses for 2002.
PNB officials however confided that reduction of losses this year would depend on restructuring of outstanding debts of the Manila Electric Co. (Meralco) and the East Asia Power Corp.
It also has 19,000 foreclosed properties and its headquarters in the reclaimed area in Pasay City. The bank originally wanted to sell its head office at an estimated cost of P6.5-billion. And move to new sites at either the Petron Plaza along Buendia Ave., or the BA-Lepanto bldg., along Paseo de Roxas Ave. which they have a stake. – With Des Ferriols