PNB income inches up slightly to ₱9.8 B

Published March 10, 2020, 12:00 AM

by manilabulletin_admin


Philippine National Bank posted a slight improvement in net income to ₱9.8 billion in 2019 from the earnings of ₱9.6 billion in 2018 due to strong growth in net interest income, fees and commissions as well as trading gains.

“I am pleased with the improvements in our core income for 2019,” PNB President and CEO Wick Veloso said in a disclosure to the Philippine Stock Exchange.

He noted that, “Excluding the impact of non-recurring gains from the sale of foreclosed assets, the Bank’s core net income grew by 57 percent year-on-year.”

At the end of 2019, PNB’s total consolidated resources stood at ₱1.14 trillion, up 16 percent from the year-ago level.

“The year’s financial results reflect the strength of PNB’s franchise in its wholesale and retail businesses,” Veloso said.

He added that, “We expect to sustain the improvement in the quality of earnings of the bank as we enhance the Safe and Aggressive Growth strategy with added focus on profitability moving forward.”

PNB’s net interest income expanded by 20 percent year-on-year to ₱32.4 billion on the back of improved earnings from loans to corporate, commercial and small and medium enterprises, and other interest-earning assets.

Loan receivables registered double digit growth to ₱657.9 billion as of end 2019, higher by 12 percent from 2018. On the other hand, deposit liabilities reached ₱826.0 billion, up by 13 percent versus 2018 year-end level.

Net service fees and commission income grew by 20 percent from enhanced cross selling efforts resulting in improvements in underwriting fees from capital market transactions as well as loan, deposit and credit card-related fees.

Net trading and foreign exchange gains expanded by 97 percent due mainly from favorable opportunities in the market.

Meanwhile, net gains from sale of acquired assets declined to ₱690 million compared to last year’s ₱5.9 billion. Despite the reduction, total operating income registered a 6 percent improvement on account of solid growth in core revenues.