MANILA, Philippines — The net income of Lucio Tan-led Philippine National Bank (PNB) fell by 27.7 percent to P3.9 billion in the first half from P5.4 billion in the same period last year primarily due to the absence of non-recurring income.
Without one-time gain from the sale of foreclosed assets, PNB president and chief executive officer Jose Arnulfo “Wick” Veloso said the bank’s earnings would have increased by 45 percent.
“Excluding the impact of non-recurring earnings from the sale of foreclosed assets, the bank’s core net income grew by 45 percent,” Veloso said.
In the same period in 2018, PNB booked net gains on disposal of foreclosed properties at P4.4 billion as a result of its continuing strategy of reducing non-earning assets.
Veloso said the growth registered in the first semester came from the sustained momentum of the core lending, investment, and deposit-taking activities as the Philippine economy continued its growth trajectory.
“This strong growth is a clear indication that the various strategic initiatives we have put in place are gaining traction in this fast-moving economy. We have the momentum and are excited to unlock the significant revenue contribution of the forthcoming integration of PNB Savings Bank into PNB,” Veloso said.
PNB’s total assets grew by 24 percent to P1.09 trillion as of end-June.
“We are heartened by the bank’s positive financial results in the first six months of this year,” he said.
Loans and receivables, supported by the double-digit growth in loans to commercial and small and medium enterprise (SME) segments, increased by 13 percent to P594.1 billion, better than June 2018 balances.
PNB’s stable retail banking franchise catapulted its deposit liabilities to a 15 percent growth, now at P775.1 billion.
Veloso cited the strong improvements in the bank’s core revenues comprising of net interest income and net service fees and commissions.
Net interest income accounting for 77 percent of total operating income went up by 13 percent to P14.7 billion due to the expansion in interest-earning assets, while net service fees and commissions expanded by 11 percent due to the intensified efforts on cross-selling deposits and credit cards to customers.