PNB net profit up on higher interest income, lower expenses

PHILIPPINE National Bank’s (PNB) net income rose by 10.39% in the first quarter amid higher interest earnings and decreased provisions and expenses, it reported on Thursday.

The bank’s net income stood at P5.31 billion in the first quarter, climbing from the P4.81 billion booked in the same period last year, according to part of PNB’s unaudited financial statement for the period disclosed to the stock exchange.

Its full quarterly report was unavailable as of press time.

The bank’s net interest income grew by 11.87% year on year to P11.69 billion last quarter from P10.45 billion.

Net earnings from service fees and commissions likewise increased by 23.74% to P1.18 billion in the period from P1.55 billion a year prior.

As a result, PNB’s core income was at P12.88 billion in the first quarter, climbing by 7.27% from P12 billion in the comparable year-ago period.

Meanwhile, non-interest income decreased by 65.05% to P1.19 billion in the January-March period from P3.4 billion a year prior.

This came even as the bank booked higher trading and investment and foreign exchange gains of P522.327 million from P387.564 million, as income from other sources dropped to P665.539 million from P3.011 billion previously.

The decline in non-interest earnings caused PNB’s total operating income to go down by 8.69% to P14.06 billion in the first quarter from P15.4 billion in the same period a year ago.

Meanwhile, operating expenses decreased by 7.53% to P7.34 billion in the period from P7.94 billion a year prior.

The bank set aside lower loss provisions in the first quarter at P619.76 million, down 61.62% from P1.61 billion in the same period last year.

PNB’s loans and receivables declined by 1.01% to P609.95 billion at end-March from P616.71 billion at end-2023, its consolidated statements of condition showed.

On the funding side, deposit liabilities also went down by 1.25% to P916.39 billion as of March from P927.97 billion at end-2023.

The bank’s total assets stood at P1.196 trillion at end-March, down by 1.2% from P1.21 trillion at last year’s close.

Meanwhile, its total equity grew by 2.86% to P196.62 billion in the period from P191.15 billion at end-2023.

PNB’s shares declined by 25 centavos or 1.15% to close at P21.45 apiece on Thursday.