PHILIPPINE National Bank (PNB) saw its net profit rise in the first quarter on the back of growth in its core operating revenues.
In a disclosure on Tuesday, the Lucio C. Tan-owned PNB said it booked a net income of P1.5 billion in the January-March period, up 20% from the P1.2 billion it logged the same period last year.
The lender attributed its improved profit to the 24% year-on-year growth in its core operating revenues.
PNB’s net interest income rose 25% to P6.4 billion last quarter from P5.2 billion in the comparable year-ago period, driven by “higher loan volumes and net interest margins.”
Total loans expanded by 16% to P502.5 billion last quarter from a year ago. Total deposits also rose 11% to P658.1 billion.
Net service fees and commission income also went up 20% to P852.1 million in the January-March period.
However, trading and foreign exchange gains plunged to P54 million in the three months ended March from last year’s P498 million.
Overall, PNB’s consolidated assets stood at P850.7 billion at end-March, growing 8% from the year-ago figure.
PNB’s net non-performing loans (NPL) ratio stood at 0.35%, while NPL coverage remained “more than adequate,” standing at 131%.
The bank’s common equity Tier 1 ratio stood at 14.6%, while capital adequacy ratio was at 15.3%.
Last month, the lender raised $300 million in fixed-rate senior notes under the first tranche of the bank’s Euro medium term note program, marking the maiden drawdown from its $1-billion program.
“There was strong demand for the offering which reached approximately $1.2 billion at its peak, equivalent to an oversubscription of four times the issue amount, with 118 investors registering interest at that time,” PNB told the Philippine Stock Exchange yesterday.
Moody’s Investors Service assigned an investment-grade rating to PNB’s note issuance, matching the Baa2 rating of the Philippine government.
PNB shares closed at P52 apiece on Tuesday, down 10 centavos or 0.19%. — K.A.N. Vidal