PNB earnings surge by 55% to P18B in 2023

LUCIO Tan-led Philippine National Bank (PNB) saw its consolidated net income rise 55 percent to P18 billion last year, from 2022’s P11.6 billion, following robust net interest income and lower credit provisions.

Excluding gains on a property sale, net core banking income ballooned to 156 percent year on year. This translated to a return on equity of 10 percent, improving from 7.0 percent a year earlier.

“Our performance for 2023 is a testament to the bank’s efforts in upholding our vision of being among the top banks in terms of customer growth and satisfaction as well as return on equity,” PNB President Florido Casuela said in a statement.

He also affirmed the bank’s commitment to promoting financial prosperity for Filipinos and their businesses as well as empowering them by “helping build a competitive, inclusive, and sustainable economy.”

Lower provisions on distressed loans and other credit assets bolstered last year’s “healthier performance,” the bank said, as markets rebounded from the pandemic and other adverse conditions.

Net interest margin was said to have expanded to 4.2 percent from 3.6 percent, driven by PNB’s continued focus on the “efficient deployment of funds.”

Gross loans grew 5.0 percent year on year to P642 billion following increased lending to the commercial sector and small- and medium-sized enterprises.

The bank said that current account and savings account (CASA) deposits, which climbed 4.0 percent year on year, accounted for 83 percent of its total deposits in 2023.

Trading and foreign exchange gains, meanwhile, rose by more than fourfold to P1.8 billion as a result of efforts to capitalize on growth opportunities amid “limited market liquidity and a rising interest rate environment.”

The prudent cost management scheme led to flat operating expenses of P28.4 billion, PNB said, recording a cost efficiency ratio of 50 percent, better than a year ago’s 54 percent.

Total assets as of end-2023 reached P1.2 trillion, up 6.0 percent year on year on the back of higher loans and investment portfolios.