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PNB profit rises 34% as loan loss provisions tumble
In a financial statement filed with the Philippine Stock Exchange, PNB said provisions for impairment, credit and other losses fell by 37.5 percent to P2.09 billion from January to March this year compared to P3.35 billion in the same period last year.
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PNB profit rises 34% as loan loss provisions tumble

Lawrence Agcaoili (The Philippine Star) - May 14, 2021 - 12:00am

MANILA, Philippines — Philippine National Bank (PNB) earned P1.79 billion or 34 percent more in the first quarter amid lower provisions for potential loan losses as the country recovers from the pandemic-induced recession.

In a financial statement filed with the Philippine Stock Exchange, PNB said provisions for impairment, credit and other losses fell by 37.5 percent to P2.09 billion from January to March this year compared to P3.35 billion in the same period last year.

This translated to a 17.1 percent decline in total operating expenses to P8.78 billion from P10.6 billion.

The bank booked a higher return on equity of 4.68 percent versus 3.53 percent as well as a higher return on assets of 0.61 percent from 0.49 percent.

PNB said its total operating income declined by 9.9 percent to P11.08 billion from January to March this year compared to P12.3 billion in the same period last year.

The bank’s net interest income slipped by 6.7 percent to P8.24 billion amid lower yields on loans and receivables, while other income fell by 38 percent to P1.55 billion due to the decline in net gains on trading and investment securities.

On the other hand, the bank’s net service fees and commission income jumped by 34.5 percent to P1.29 billion due to higher credit card-related fees and underwriting fees.

PNB’s cost efficiency ratio improved to 60.34 percent in end-March from 58.86 percent last year.

The assets of the Tan-led bank stood at P1.13 trillion as of end-March this year. This translated to a higher capital adequacy ratio (CAR) of 14.77 percent from 14.72 percent and common equity Tier 1 (CET-1) ratio of 14.11 percent from 13.8 percent.

PHILIPPINE NATIONAL BANK
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