Philippine National Bank (PSE: PNB) registered a consolidated net income of P13.5 billion for the first nine months of 2023, 19 per cent higher compared to its earnings for the same period last year.
The stronger performance year-on-year was attributed to the growth in the bank’s core lending and fee-based operations.
Facade shot of a PNB building in Manila (IMAGE CREDIT: https://fintechranking.com/)
The bank’s net interest income rose by 23 per cent to P33.0 billion from the year-ago level of P26.8 billion, driven by higher loan volumes coupled with an improving net interest margin of 4.2 per cent as compared with the previous year’s 3.4 per cent.
Gross loans amounted to P635 billion as of end-September 2023, up 4 per cent from the end-December 2022 level on the back of PNB’s sustained growth in corporate loans, and expanded reach to the commercial and retail lending spaces.
Deposit liabilities, on the other hand, increased by 5 per cent as the bank continued to build up its CASA portfolio while offering other deposit products with competitive rates. Net fee-based income likewise grew by 21 per cent year-on-year, buoyed by higher volumes of lending and deposit-related transactions.
Despite the limited trading opportunities and market liquidity, the bank managed to improve its treasury-related income by 36 per cent as it took advantage of rate movements in the market during this period.
Monetizing values for foreclosed properties
PNB also continued its strategy to dispose and monetize the values of its foreclosed properties in the first nine months of 2023, albeit lower than the gains posted a year ago.
The bank’s operating expenses amounted to P21.4 billion for the first nine months of 2023, a 4 per cent reduction year-on-year due to prudent spending despite the continued business growth. On the other hand, the bank also continued to set aside additional provisions of P5.2 billion given the prevailing uncertainties in 2023.
As of end-September 2023, the bank’s consolidated assets stood at P1.18 trillion, up by 3 per cent from the end-December 2022 level, primarily driven by higher loans and investment securities. The bank’s total equity also expanded by 10 per cent year-on-year, bringing its Capital Adequacy Ratio to 16.6 per cent and Common Equity Tier 1 Ratio to 15.7 per cent, both of which remained well above the minimum regulatory requirement of 10 per cent.
“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.”
PNB has won the “Philippines Digital Experience of the Year – Banking” award at the Asian Experience Awards 2023 for its PNB Digital App. The application was cited for offering clients a superior banking experience with its fresh look, intuitive design, and quick access to frequent banking transactions via a customizable dashboard.
The bank also received the prestigious Four Golden Arrow Award during the 2023 ASEAN Corporate Governance Scorecard Golden Arrow Awards held last September 2023. This is in addition to the two
awards it received as “Best Collection Partner” for the Overseas Bank category and “Best Disbursement Partner” for the universal bank category during the SSS Balikat ng Bayan Awards held in September 2023.