Philippine National Bank (PNB), the lender controlled by taipan Lucio Tan, reported a 55 percent jump in consolidated net income to P18 billion in 2023 on the back of robust net interest income and lower provisions.
In a disclosure to the Philippine Stock Exchange (PSE), the bank said its net core banking income, which excludes gains on sale of acquired properties, climbed by a record 156 percent year-on-year.
This translated to an improved return on equity of 10 percent from the seven percent posted a year ago.
“Our performance for 2023 is a testament to the Bank’s efforts in upholding our vision of being among the top banks in terms of customer growth and satisfaction as well as return on equity,” said PNB President Florido P. Casuela.
The bank’s net interest margin widened to 4.2 percent in 2023, compared to the 3.6 percent in the previous year, as its continued its focus on the efficient deployment of funds.
Gross loans increased by five percent from year-ago to P642 billion by end-2023 as the bank expanded its lending to the commercial sector and small and medium-sized entities.
Likewise, the bank continued to build up its current and savings accounts (CASA) deposits, growing by four percent year-on-year, and accounting for 83 percent of the bank’s total deposits as of end-2023.
Trading and foreign exchange gains at P1.8 billion rose by more than four times year-on-year as the bank was able to capitalize on market opportunities, despite the limited market liquidity and rising interest rate environment in 2023.
The bank also offloaded certain high-value foreclosed properties as it continues to aggressively dispose off of non- performing assets.
The healthier performance in 2023 was augmented by lower provisions on distressed loans and other credit assets as the market continued to rebound during the year from the lingering effects of the pandemic and other adverse market conditions in recent years.
Operating expenses remained flat at P28.4 billion in 2023 due to prudent spending despite the continued business growth. As a result, cost efficiency ratio improved to 50 percent from last year’s 54 percent.
As of end-2023, the PNB’s total assets stood at P1.2 trillion, increasing by six percent from the previous year’s level, buoyed by higher loans and investment portfolio.
Meanwhile, the bank’s capital at P191 billion grew by 13 percent year-on-year, resulting in stronger Common Equity Tier 1 Ratio and Capital Adequacy Ratio of 16.85 percent and 17.7 percent, respectively.