Philippine National Bank (PNB) reported a 19 percent increase in its consolidated net income for the first nine months of this year to P13.5 billion from P11.3 billion in the same period last year driven by its core lending and fee-based operations.

In a disclosure to the Philippine Stock Exchange (PSE), the bank’s net interest income increased by 23 percent to P33 billion this year from P26.8 billion last year because of higher loan volumes and improving net interest margin of 4.2 percent.

The bank’s segment revenues for the nine-month period totaled P44 billion, including its retail and corporate banking, treasury, and other segments.

Gross loans increased by four percent, amounting to P635 billion as of the end of September due to sustained growth in corporate loans, and expanded reach to the commercial and retail lending spaces.

Meanwhile, deposit liabilities also went up by five percent as the bank “continued to build up its CASA portfolio while offering other deposit products with competitive rates. Net fee-based income was also 21 percent higher given greater volumes of lending and deposit-related transactions."

Operating expenses decreased by four percent to P21.4 billion this year due to prudent spending, but the bank noted that it still has P5.2 billion worth of additional provisions given prevailing uncertainties left in the year.

By the end of September, its consolidated assets climbed by three percent to P1.18 trillion compared to the end of the year in 2022 because of higher loans and investment securities.

Lastly, PNB’s total equity expanded by 10 percent, with a Capital Adequacy Ratio to 16.6 percent and Common Equity Tier 1 Ratio to 15.7 percent.

“We continue to be focused on sustaining our profitability while enhancing our efficiencies,” said PNB President Florido P. Casuela.

“We aim to be responsive to the needs of our customers and help them achieve their financial and business goals as our economy continues to recover,” Casuela added.