PNB earns 20% more to P1.5 billion

MANILA, Philippines — Earnings of listed Philippine National Bank (PNB) jumped 20 percent to P1.5 billion in the first quarter from P1.2 billion a year ago on the back of the strong performance of its core businesses.

The bank registered a 25 percent jump in net interest income to P6.4 billion from P5.2 billion, driven by higher loan volumes and improving net interest margins.

Its loan book grew by 16 percent to P502.5 billion in the first quarter, while total deposits recorded a double-digit 11 percent increase to P658.1 billion.

Likewise, net service fees and commission income surged 20 percent year-on-year to P852.1 million.

On the other hand, trading and foreign exchange gains plunged by 89.1 percent to P54 million from P498 million amid the volatile global equities and financial markets.

PNB’s operating expenses rose by 14 percent to P5.78 billion from P5.09 billion as strong revenue growth translated to higher business taxes and other business related expenses.

Despite the rise in its total loan portfolio, the bank’s net non-performing loans (NPL) ratio was at 0.35 percent, while NPL coverage remain more than adequate at 131 percent.