Philippine National Bank, the country’s sixth-largest lender, said net income in 2016 grew 14 percent to P7.2 billion from P6.3 billion in 2015, driven by a steady improvement in core businesses.
“PNB’s healthy financials is the result of our continuing efforts to enhance our core business. A robust loans business and strong trading gains contributed to the bank’s sustained growth,” PNB president Reynaldo Maclang said in a statement Tuesday.
“The bank’s various business sectors played key roles in helping PNB keep its position as one of the country’s top private universal banks. We owe our success to the continued trust and support of our clients and business partners,” Maclang said.
Bank’s net interest income grew 11 percent to P19.6 billion, accounting for nearly two-thirds of total operating income. Net interest margin was maintained at 3.2 percent, despite the decline in asset yields, as this was compensated by the 12-percent growth in low-cost deposits combined with the redemption of its P6.5-billion lower Tier 2 unsecured subordinated notes in June 2016.
PNB’s loans-to-deposits ratio stood at 73 percent, reflecting the bank’s continued focus on the efficient deployment of funds. The strong performance during the year was also attributed to the double-digit growth in its non-interest income. Trading and foreign exchange gains registered a 61-percent increase year-on-year, as the bank benefited from growth in transaction volumes and favorable market conditions.