PNB earns P3.6 B in H1

MANILA, Philippines - Earnings of Philippine National Bank (PNB) grew 12 percent in the first half of the year amid the sustained growth in the bank’s core businesses.

PNB reported yesterday its net income reached P3.59 billion from January to June this year or about P388 million higher compared to P3.20 billion in the same period last year.

The bank’s net interest income inched up 2.5 percent to P8.69 billion in the first half of the year from P8.47 billion in the same period last year.

Total operating income of the bank slipped 1.45 percent to P13.3 billion from P13.49 billion. If not for the redemption of non-performing assets in 2014, PNB said its core net interest income actually grew by 11 percent.

Excluding trading and foreign exchange gains, non-interest income of PNB was up 20 percent due to the sale of its memorial lot inventory in the Heritage Park.

“This was largely contributed by substantial increases in net insurance premiums and gains from sale of assets, which included the sale of P1 billion worth of Heritage Park memorial lot inventory to STI Group’s pre-need affiliate PhilPlans First Inc.,” the bank said.

It also cited the 36 percent improvement in the net profits of PNB’s subsidiaries.

The bank reported a 6.3 percent decline in total operating expenses to P8.81 billion in the first half of the year from P9.4 billion a year ago.

For the second quarter, PNB’s net income amounted to P2.35 billion, up 26 percent from P1.86 billion in the second quarter last year. Earnings in the second quarter were also double the P1.2 billion booked in the first quarter of the year.

“The strong performance during the quarter was driven by the sustained growth in the bank’s core business as net interest income increased 10 percent year-on-year, while fee-based and other income excluding treasury-related income rose by 19 percent,” PNB added.

The bank’s consolidated assets reached P644.68 billion in end-June this year from P625.44 billion last year. Liabilities amounted to P541.97 billion from P526.38 billion.

PNB reported a 25 percent jump in loans to P331.9 billion amid the double-digit increase in corporate and commercial or small and medium-sized enterprises (SME) loans.

Notwithstanding the aggressive loan expansion, the bank said its asset quality continued to improve as it reduced significantly its non-performing loans (NPLs) through negotiated settlements and other collection initiatives.

PNB’s consolidated risk-based capital adequacy ratio (CAR) has consistently exceeded the minimum regulatory requirement of 10 percent with total CAR at 19.6 percent and Tier 1 CAR ratio 16.6 percent.