Philippine National Bank (PNB), the financial arm of tycoon Lucio Tan, said Monday it booked a consolidated net income of P15.1 billion in the first nine months of 2024, a 12-percent increase from the same period last year.
The bank said the growth was driven by a double-digit increase in net interest income.
Net interest income, which accounts for 83 percent of total operating income, rose 10 percent year-on-year to P36.5 billion on the back of a 15-percent rise in interest income from expanded loans to customers and investments, along with improved yields.
The bank said it also managed to contain higher interest expenses on deposits by using funds to finance assets with better returns.
“The bank’s core revenues steadily increased as we continue to enhance our policies and processes to sustain the growth momentum of the Bank’s core banking activities amidst continued economic expansion,” said Francis Albalate, chief financial officer of PNB.
Other operating income reached P4.1 billion for the period ending Sept. 30, 2024, lower than the previous year’s, which included P3.7 billion from the sale of foreclosed assets.
Excluding these non-recurring gains, other operating income increased by 31 percent year-on-year, driven by improved trading income.
Operating expenses rose 1 percent to P21.7 billion, reflecting higher business taxes and related expenses from solid revenue growth.
PNB said it allotted P3.7 million in additional credit provisions during the period. As of Sept. 30, 2024, PNB’s total consolidated assets reached P1.20 trillion, a 2-percent increase from the previous year, attributed to more loans and treasury assets.
The bank’s reported income boosted total equity by 13 percent year-on-year to P210.1 billion.
The bank’s capital adequacy ratio stood at 17.8 percent, while the common equity tier 1 ratio was at 16.9 percent, both well above regulatory requirements.
PNB early this month entered the international market with a $300-million US dollar five-year sustainability bond.
