Lending income boosts PNB’s earnings in Q2
MANILA — Philippine National Bank's net income in the second quarter rose by more than a fourth from a year ago.
In a disclosure to the Philippine Stock Exchange, the Lucio Tan-owned lender said it earned P2.4 billion in the April to June period, a 26 percent year-on-year increase and nearly twice the net income in the first three months of the year.
The second-quarter growth was fueled by the 10 percent year-on-year increase in net interest income, as well as by the 19 percent uptick in fee-based and other income excluding treasury-related income.
The second-quarter results led first-half profit to grow 12 percent year-on-year to P3.6 billion. Net interest income comprised 65 percent of total earnings and grew 2.5 percent to P8.7 billion from a year ago.
Non-interest income, net of trading and foreign exchange gains, rose 20 percent on the back of the higher net insurance premiums and gains from the sale of assets, including P1 billion worth of Heritage Park memorial lot inventory to STI Group's pre-need unit, Philplans First Inc.
PNB's assets reached P644.7 billion at the close of the first half, with its loan portfolio growing by 25 percent year-on-year to P331.9 billion because of double-digit increases in corporate and commercial or SME loans.
Despite the growth in its loan portfolio, asset quality improved, with PNB's gross nonperforming loans (NPLs) ratio declining to 2.87 percent from 4.14 percent last year. The bank set aside loan loss reserves comprising 119.9 percent of its NPLs.