PNB profit down 21%
Lawrence Agcaoili (The Philippine Star) - November 7, 2017 - 4:00pm

MANILA, Philippines — The absence of one-time gains slashed the earnings of listed Philippine National Bank (PNB) by 21 percent in the first nine months.

In a report to the Philippine Stock Exchange (PSE), PNB said its net income amounted to P4.5 billion from January to September, P1.2 billion lower than the P5.7 billion recorded in the same period last year.

The bank said last year’s earnings included one-time gains amounting to P2.7 billion from the disposal of foreclosed assets, collection of non-performing assets, and the sale of its 51 percent stake in PNB Life Insurance Inc. to Allianz SE in June last year.

The country’s sixth largest bank owned by tobacco and airline magnate Lucio Tan registered a 10 percent increase in net interest income in the first nine months as its loan book rose 11 percent amid higher lending to corporate, commercial as well as small and medium enterprises.

Non-interest income reached P5.5 billion for the first nine months, lower than the year-ago mainly due to the one-off revenue earned in the first half of last year consisting of net gains from major disposals of foreclosed assets, net gain on the sale of shares of stock of a subsidiary, and collection of non-performing assets.

The 37 percent jump in the bank’s third quarter income failed to lift its profit in the first nine months. During the quarter, PNB’s net interest income increased 15 percent.

Meanwhile, treasury-related income declined due to muted trading opportunities as investors continue to stay on the sidelines amid further global monetary tightening, geopolitical uncertainties, and interest rate development in the international markets.

On the other hand, operating expenses, excluding provision for impairment and credit losses, were kept to a minimal increase of three percent due to prudent spending despite aggressive business growth.

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