PNB Savings books higher earnings in first half

PNB Savings Bank saw its net income jump by over a fourth during the first six months of the year, driven by a surge in both retail and corporate loans.

In a statement, the thrift banking arm of listed Philippine National Bank said its net profit totalled P233 million as of end-June, up 27% from P183 million booked during the comparable year-ago period.

The bank owned by Lucio C. Tan said net interest income grew by 43% from a year ago, fuelled by a robust expansion in its loan portfolio. Loans granted by PNB Savings Bank reached P37.83 billion as of the first semester, posting a 61% increase from a year prior.

“The bank’s strong performance in the first half of 2017 was mainly driven by the sustained expansion of our core business, consumer loans and deposits,” PNB Savings Bank President Jovencio B. Hernandez was quoted as saying in the statement issued late Thursday.

The thrift unit said loan growth was largely supported by the bank’s offerings for car and home mortgages. Soured debt also stood at just 3.24% of total credit, which is lower than the industry’s 5.1% average, PNB said.

On the other hand, deposits held by the thrift bank rose by 73% year-on-year to hit P31.12 billion coming from the P17.95 billion recorded from January-June 2016, most of which were long-term deposits.

PNB Savings said it remains well-positioned versus credit shocks as it set aside buffers worth nearly triple the regulatory standard. The bank’s capital totalled P11.582 billion in June or 28.31% of its total risk-weighted assets, well above the 10% requirement set by the Bangko Sentral ng Pilipinas.

The thrift bank — which was the product of the merger of PNB and its fellow Lucio C. Tan-owned Allied Banking Corp. in 2013 — operates 55 branches nationwide, with plans to open at least 20 more offices by the end of the year. — Melissa Luz T. Lopez