Philippine National Bank (PNB) said Friday its net income grew 19 percent in the first nine months of 2023 to P13.5 billion from a year ago, boosted by core lending and fee-based operations.
The bank’s net interest income rose 23 percent to P33 billion from P26.8 billion, driven by higher loan volumes coupled with improving net interest margin of 4.2 percent as compared with previous year’s 3.4 percent.
“We continue to be focused on sustaining our profitability while enhancing our efficiencies,” said PNB president Florido Casuela.
“We aim to be responsive to the needs of our customers and help them achieve their financial and business goals as our economy continues to recover,” he said.
PNB’s gross loans amounted to P635 billion as of end-September, up 4 percent from the end-December 2022 level on the back of the bank’s sustained growth in corporate loans and expanded reach to the commercial and retail lending spaces.
Deposit liabilities, on the other hand, increased by 5 percent as the bank continued to build up its CASA portfolio while offering other deposit products with competitive rates.
Net fee-based income grew by 21 percent year-on-year, buoyed by higher volumes of lending and deposit-related transactions.
The bank’s operating expenses amounted to P21.4 billion for the first nine months of 2023, a 4 percent reduction year-on-year due to prudent spending despite the continued business growth.
The bank, on the other hand, continued to set aside additional provisions of P5.2 billion given the prevailing uncertainties in 2023.
The bank’s consolidated assets stood at P1.18 trillion as of end-September 2023, up by 3 percent from end-December 2022 level, primarily driven by higher loans and investment securities.
PNB’s total equity also expanded by 10 percent year-on-year, bringing its capital adequacy ratio to 16.6 percent and common equity tier 1 ratio to 15.7 percent, both above the minimum regulatory requirement of 10 percent.
