PHILIPPINE National Bank (PNB) saw its net profit climb in the first half of the year on the back of growth in its total operating income.
In a regulatory filing on Monday, the Tan-led bank said its consolidated net income stood at P5.4 billion in the six months ended June, double the P2.7 billion it booked in the same period last year.
The bank said the 50% growth in total operating income “provided the momentum for the strong performance” as its core earnings and non-recurring revenues increased.
The bank’s net interest income stood at P13.1 billion in the first semester, up 27% from the year-ago level of P10.3 billion. PNB said this was driven by “higher loan volumes and net interest margins.”
PNB’s total loans expanded 16% year-on-year to P529.6 billion.
Its non-performing loans (NPL) ratio was at 0.30%, while NPL coverage stood at 132%.
Total deposits meanwhile grew 8% to P672.2 billion.
Likewise, the lender’s net profit on service fees and commissions totalled P1.68 billion, higher by 57% or P61 million from the P1.07 billion booked in the same period last year.
The lender said this was boosted by higher credit, deposit and bancassurance fees, which offset lower underwriting and investment banking revenues due to “lackluster activities in the capital markets during the period.”
Trading and foreign exchange gains were down to P795 million due to a continuous rise in interest rates.
The lender meanwhile logged higher net gains on disposal of foreclosed properties at P4.4 billion in the first half of the year.
Operating expenses, on the other hand, climbed 18% excluding provisions for impairment credit losses supported by strong revenue growth translating to higher business taxes and other business-related expenses.
Meanwhile, PNB set aside P1.2 billion for provisions for impairment and credit losses in the period to maintain loan portfolio quality and in compliance with new accounting standards.
Overall, the lender’s total consolidated assets stood at P876.2 billion at end-June, up 6% from the previous year. Total equity also grew 9.1% or P10.4 billion to P124.3 billion from last year’s P113.9 billion.
PNB shares closed at P45.40 apiece on Monday, down by 10 centavos or 0.22% from the previous session. — K.A.N. Vidal