Philippine National Bank, the country’s fifth-largest lender in terms of assets and controlled by airline and tobacco tycoon Lucio Tan, posted a consolidated net income of P2.4 billion in the third quarter, up 17 percent year-on-year, on increased core lending and fee-based activities.
The third-quarter profit lifted the total consolidated net income to P6.4 billion in the nine-month period, albeit lower than P7.5 billion a year ago, due to non-recurring gains from the sale of foreclosed assets in that year.
“PNB is reporting a solid nine months and third quarter, with good operational execution in our wholesale and retail businesses. Excluding the impact of non-recurring earnings from the sale of foreclosed assets, the bank’s core net income grew by 29 percent for the first nine months of the year,” PNB president and chief executive Wick Veloso said in a statement.
“Driven by our strategy focused on safe, aggressive growth, we continue to track the growth of the economy as we support our customers in key infrastructure projects throughout the archipelago. The economy continues to demonstrate strength, helping push our performance level up,” he said.
Net interest income rose 17 percent year-on-year to P23.4 billion on account of improved earnings from loans to corporate, commercial and small and medium enterprises, and other interest-earning assets.
Loan receivables continued to register double-digit growth, which now stand at P644.8 billion as of end September, higher by 11 percent from end December last year. Deposit liabilities amounting to P820.9 billion grew 12 percent from a year ago.
Net trading and foreign exchange gains expanded 33 percent resulting mainly from favorable opportunities in the market. Net fee-based revenues also posted increases with 14 percent growth year-on-year spurred by efforts in cross-selling deposits and credit cards to customers, as well as revenues from underwriting deals.
Operating expenses, excluding provisions for impairment and credit losses, climbed 13 percent from over the same period last year, as robust revenue streams translated into higher business taxes and other business-related expenses.
Total consolidated assets stood at P1.18 trillion as of end-September, up 30 percent or P269 billion from a year ago.