PNB profit hits P11.4B in Jan-sep period

THE Philippine National Bank (PNB) posted a net income of P11.4 billion for the first nine months of 2022, according to its disclosure to the local bourse on Monday.

However, the publicly-listed bank said its net income in the January to September period was lower than the P26.4 billion reported for the same period last year.

Last year’s net income, PNB said, increased mainly due to the one-off P33.6 billion gain from the propertyfor-shares swap transaction implemented in 2021.

“Without the effect of this one-off transaction, the operating income of the bank showed growth of 14 percent year-on-year,” PNB said in a statement to the Philippine Stock Exchange (PSE).

The bank’s 9-month net interest income increased by 4 percent year-onyear, driven by a 21-percent growth in interest income.

This was earned from its investment portfolio and other liquid placements in the midst of the current rising interest rate environment, resulting in an improved net interest margin of 3.4 percent from 3.3 percent a year ago.

“PNB continues to be profitable as it showed improvements in efficiency pushing our momentum towards achieving our strategic priorities,” PNB Acting President Florido P. Casuela said. “Our results indicate that we have the right strategy to deliver real value to our clients, our investors, and the overall economy in these challenging times.”

The lender’s gross loan portfolio expanded to P638.3 billion as of endseptember 2022, increased by a percent from the loan level last year as the bank further stretched its lending to large corporates during the period.

Provisions set up on these loans are 97 percent lower than the amounts provided in the same period last year when the bank was still continuing to build its loan loss reserves, particularly on accounts impacted by the pandemic.

Further, the bank continued to build up its current and savings deposits, resulting in a modest 1 percent increase in total deposits from year-ago level, tempered by its initiatives to trim down high-cost time deposits, amid the rise in benchmark interest rates.

Net fee-based income for the first three quarters contracted by 8 percent year-on-year, primarily due to reductions in credit-related and underwriting fees.