PHILIPPINE National Bank (PNB) posted a higher net income in 2018 driven by its core businesses.
In a regulatory filing on Monday, the Lucio C. Tan-owned lender said it booked a net profit of P9.6 billion last year, up 17% from the P8.2 billion tallied in 2017.
The lender attributed the growth in its bottom line to “sustained efforts in strengthening the bank’s core business.”
Net interest income stood at P27 billion, up 23% year-on-year, driven by a 19% expansion in gross loans and the widening of its net interest margin to 3.3%.
Despite seeing “robust” loan growth, asset quality remained strong with a gross non-performing loan (NPL) ratio of 1.76% with NPL coverage of 156.87%.
“Funding efficiencies were achieved behind a 22% increase in low-cost demand deposits which fuelled growth in deposit liabilities,” the statement from the bank read.
Net service fees and commissions grew 9% in 2018 driven by improvements in deposit, trade, credit card-related fees as well as bancassurance income, partially offsetting a decline in underwriting fees.
Meanwhile, net gains from sold assets grew to P5.9 billion from last year’s P3.9 billion.
Total operating income of the bank stood at P38.9 billion, up 20% from the P32.3 billion in the previous year.
On the other hand, operating expenses excluding provisions for impairment and credit losses grew 13% year-on-year due to higher business taxes and other business-related expenses.
Overall, PNB’s assets grew 18% to P983.6 billion last year from P836.3 billion in 2017 driven by current and savings account deposits as it continued to focus on generating low-cost funds and other stable sources of funding.
Capital adequacy ratio was at 14.35% while common equity Tier 1 ratio was at 13.55% at end-2018.
In April 2018, the bank issued $300 million of five-year fixed rate senior notes out of its $1-billion medium term note program in Singapore and Hong Kong.
The bank recently raised P8.22 billion worth of 5.5-year long-term negotiable certificates of deposit, which will be used to help extend its maturity profile.
PNB shares stood at P60.25 apiece, up 0.65 centavos or 1.09%. — KANV

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