MANILA, Philippines - Earnings of Philippine National Bank (PNB) jumped 27 percent in the first nine months as the bank’s profits doubled in the third quarter from higher non-interest income.
PNB’s net income amounted to P4.7 billion from January to September, P1 billion higher compared to the P3.7 billion recorded in the same period last year.
The bank’s net interest income grew five percent to P13.23 billion in the first nine months from P12.61 billion in the same period last year due to higher earnings from loans and receivables as well as trading and investment securities.
PNB expanded its loan portfolio by 13 percent to P329 billion in the first nine months, propelled by its strong corporate and commercial or small and medium sized enterprises (SME) lending business.
Interest income from loans and receivables went up 12.4 percent to P12.6 billion from P11.21 billion, while interest earnings from trading and investment securities jumped 17 percent to P2.95 billion from P2.52 billion.
This was more than enough to offset the 55 percent plunged in interest income from deposits with banks and others to P707.5 million from P1.56 billion.
Interest expense rose 13.4 percent to P3.05 billion from January to September this year compared to P2.69 billion in the same period last year.
Other income from trading and investment securities as well as foreign exchange operations inched up 4.8 percent to P19.97 billion from P19.05 billion.
Earnings from the trading and investment securities fell 62.5 percent to P437.5 million from P1.17 billion, while profits from foreign exchange operations retreated by 12 percent to P902.18 million from P1.02 billion.
On the other hand, gain on the sale or exchange of assets jumped 126 percent to P1.15 billion from P508.56 million. It gained P700 million from the sale of a minority equity holdings and continued reduction in treasury related income as well as P600 million form the sale of foreclosed assets.
Operating expenses declined by about one percent to P13.89 billion from P14.03 billion.
PNB’s earnings doubled to P1.11 billion in the third quarter alone from P505.39 million in the same quarter last year. Net interest income rose 9.7 percent to P4.54 billion from July to September from P4.14 billion in the same period last year.
Non-interest income jumped 20.2 percent to P6.67 billion from P5.55 billion due to higher gains from trading and investment securities as well as foreign exchange operations. Income from the sale or exchange of assets jumped 203 percent to P555.3 million from P183.4 million.