PHILIPPINE National Bank (PNB) said last November 12 it posted a consolidated net income of P24.3 billion for the first nine months of 2021, with core operating income growing by 8 percent in the third quarter spurred by sustained momentum in core lending and fee-based activities.
The bank said in a statement its 9-month net service fees and commissions “improved by 52 percent YoY, driven by higher investment banking revenues as capital markets re-opened during the year, coupled with the increases in bancassurance fees and volumes of credit and deposit-related transactions.”
During the third quarter, the lender said it registered a 3-percent quarter-on-quarter growth in net interest income to P8.9 billion on account of lower costs of funding. On a year-to-date basis, the bank said its net interest income remained relatively flat against the levels seen in the previous year, despite lower yields on loans and investments brought about by the prevailing interest rate environment for the first nine months of 2021.
As it reported last quarter, the lender said it also recognized in May a one-off gain of P33.6 billion from the transfer of prime real estate properties in exchange for shares of PNB Holdings Corp. “This further aided the bank’s consolidated year-to-date net income to grow 6-times higher compared to the earnings for the same period last year.”
Trading and foreign exchange gains slid by 66 percent YoY to P1.6 billion, resulting mainly from limited trading opportunities in the market during the period.
As of end-September 2021, the bank said its non-performing loan coverage ratio rallied to 63.6 percent from 58.2 percent last year, with the booking of additional loan provisions of P1.4 billion in the third quarter of 2021. Further, the bank said it managed to maintain the level of its operating expenses, excluding provisions, at P19.8 billion as it continued to focus on essential expenditures during this pandemic.
The lender’s consolidated total assets improved by 11 percent from year-ago levels to P1.1 trillion on account of higher loans and treasury assets. Loan receivables grew by 4 percent YoY to P600.1 billion as the bank continued to grant loans to financially-resilient borrowers. Similarly, deposit liabilities increased by 16 percent YoY to P854.7 billion with growth mostly coming from current account-savings accounts (Casa) deposits.
The bank’s Capital Adequacy Ratio of 14.3 percent and Common Equity Tier 1 Ratio of 13.5 percent remained well above the minimum regulatory requirement of 10 percent.
“Our performance this quarter shows that PNB continues to be profitable despite the negative impact of the pandemic on some of our customers and the overall economy,” PNB President and CEO Jose Arnulfo A. Veloso was quoted in the statement as saying. “With the recent reduction in Covid-19 cases, we are seeing a better-moving economy as the government is allowing more mobility.”