PNBSB 2016 first half net income surges to P183 million, up 156% year-on-year
PNB Savings Bank (PNBSB), the consumer arm of Philippine National Bank (PNB), continued to improve its profitability in the second quarter of 2016. PNBSB posted a net income of P182.7 million, more than twice the P71.4 million earned in the previous year. The first half net income even surpassed its 2015 full year net income of P167.2 million. Net interest income increased by 53%, driven by the sustained growth in the Bank’s core business as bookings on both housing and auto loans doubled.
PNBSB’s loan portfolio stood at P23.5 billion, more than double its year-ago level. Despite the aggressive expansion of the lending business, the Bank’s asset quality remained well-managed as gross non-performing loans (NPLs) ratio declined further to 2.65% from 4.03% a year ago.
During the period, the Bank intensified its deposit generation as total deposits reached P18.0 billion, up by 88% year-on-year from P9.53 billion. Growth in deposits was primarily fuelled by the increase in long term deposits that were matched with the long term assets of the Bank.
As of end-June 2016, PNBSB’s total resources aggregated P30.2 billion, up by 44%. Capital base stood at P11.35 billion, translating to a double-digit capital adequacy ratio (CAR) that was well above the minimum 10% required by the Bangko Sentral ng Pilipinas (BSP).
PNBSB continued to expand its network by putting up 4 branches during the first half of 2016. To date, the Bank has 40 branches strategically located across Metro Manila and regional growth areas. To cater to more clients nationwide, PNBSB plans to open 12 more branches for the rest of 2016. The Bank’s new branches carry a “new look and feel” in line with its re-branding efforts.
PNBSB introduced new marketing initiatives that are “first” in the market. The PNB Smart Home Insurance and the PNB Smart Auto Insurance offer light and easy insurance payments combined with monthly home loan or auto loan amortizations. These products let the customers enjoy their home and car with added security at a minimal cost without having to worry about large annual premium payments. The Bank also offered the PNB Smart Auto Upgrade Loan that allows clients to manage cash flow and at the same time, invest on a higher model.
During the first quarter of 2016, PNBSB formed a strategic partnership with technology firm, Voyager Innovations, Inc. to help automate end-to-end SSS pension loans process. With this innovation, SSS pensioners may opt to apply for loans anytime and anywhere using their mobile phones or laptops instead of visiting PNBSB branches for this purpose. Last July 20, 2016, the Bank’s SSS Pension Loan Program won the New Consumer Lending Product of the Year Award in the Asian Banking and Finance (ABF) 2016 Retail Banking Awards in Singapore.
Moving forward, PNBSB will continue to enhance its services and provide customers with more innovative products to address their diverse banking needs.
Last July 22, 2016, PNBSB’s parent bank, PNB, proudly celebrated its 100 years in the Philippine banking industry. For the past century, PNB has always been the bank that customers can lean on, offering a heritage and unique brand of Filipino service. Backed by 100 years of stability and excellence, PNB looks forward to another hundred years of serving You First.