By James A. Loyola Philippine National Bank registered a 29.7 percent drop in net income to ₱1.3 billion for the first quarter of 2020 from ₱1.9 billion in the same quarter last year due to higher provisioning amid the expected impact of the pandemic on the quality of its loans. In a statement, the bank said it recorded total revenues of ₱12.4 billion, an increase of 33 percent compared to its performance in the same quarter last year, on back of solid growth in net interest income as well as non-interest income primarily gains from securities trading. Net profit before taxes and provisions for impairment improved by 77 percent year on year. PNB’s net interest income increased by 25 percent to ₱8.8 billion on account of improved earnings from loans to corporate, commercial and small and medium enterprises, and other interest-earning assets. Loan receivables continued to register double-digit growth, which now stand at ₱651 billion as of end-March 2020, up by 10 percent from prior year. Deposit liabilities on the other hand increased by 6 percent to ₱791 billion versus March 2019 levels. Non-interest income expanded by 58 percent, due mainly to the strong trading income spurred by favorable opportunities in the market. Operating expenses, excluding provisions for impairment, were up by 13 percent from over the same period last year as robust revenue streams translated to higher business taxes and other business-related expenses. Mindful of the unprecedented uncertainties surrounding the economic impact of COVID-19, the bank decided to take a proactive approach in its provisioning. As a result, loan provisions reached ₱3.4 billion during the period, higher by ₱3.0 billion compared to the ₱346 million during the same period last year.