The Philippine National Bank (PNB) said Monday its net income grew 55 percent in 2023 to P18 billion from a year ago, driven by robust net interest income and lower credit provisions.
The bank’s net core banking income, which excludes gains on sale of acquired properties, surged by a record 156 percent year-on-year.
This translated into an improved return-on-equity of 10 percent from 7 percent posted in 2022.
Net interest margin widened to 4.2 percent in 2023 from 3.6 percent in the previous year as it continued its focus on the efficient deployment of funds.
Gross loans went up by 5 percent year-on-year to P642 million as the bank expanded its lending to the commercial sector and small and medium-sized firms.
It also continued to build up its current and savings accounts (CASA) deposits, as it registered a 4- percent year-on-year growth and accounted for 83 percent of the bank’s total deposits as of end-2023.
“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,” said PNB president Florido Casuela.
“We have made it our mission to promote financial prosperity for all Filipinos and their businesses, locally and internationally. Apart from providing financial solutions to our customers, we have made it our purpose to empower them by helping build a competitive, inclusive, and sustainable economy,” he said.
The bank also booked trading and foreign exchange gains of P1.8 billion, or more than four times higher than a year ago as it capitalized on market opportunities despite the limited market liquidity and rising interest rate environment in 2023.
The bank also offloaded certain high-value foreclosed properties as part of its strategy to dispose of non-performing assets.
The healthier performance in 2023 was augmented by lower provisions on distressed loans and other credit assets as the market continued to rebound during the year from the lingering effects of the pandemic and other adverse market conditions in recent years.
Operating expenses remained flat at P28.4 billion in 2023 due to prudent spending despite the continued business growth.
The bank’s total assets stood at P1.2 trillion as of end-2023, higher by 6 percent from the previous year’s level, buoyed by higher loans and investment portfolio.
Meanwhile, the PNB’s capital stood at P191 billion, 13 percent higher year-on-year, resulting in stronger Common Equity Tier 1 Ratio and Capital Adequacy Ratio of 16.85 percent and 17.7 percent, respectively.
