PNB bares improved operations in 2000

Philippine National Bank reported a significant improvement in its operations for the year 2000 with the reduction of its net loss to P5.97 billion from the previous year’s P13.85 billion reflecting a 57-percent improvement based on audited financial statements prepared by SGV & Co.

PNB president Feliciano Miranda, Jr. attributed this improvement to lower loan provisioning which was reduced by 65 percent, lower operating expenses and higher services fees and other income owing to the increase in remittance volume.

Miranda further said that cost reduction was achieved as a result of various operational measures that trimmed operating expenses by 8.7 percent from P8.26 billion to P7.54 billion. PNB’s remittance volume increased to $3.4 billion last year from 1999’s $3.1 billion.

PNB’s eight-year rehabilitation plan has been approved in principle by the Bangko Sentral ng Pilipinas but remains to be fully implemented as this is now being reviewed by banking regulators.

Management, nonetheless, has adopted certain components of the plan. This includes the capital infusion of P10.3 billion in October 2000 by the stockholders and various cost-reduction measures.

The projections under this plan show that the bank will eliminate losses during the first year and realize net profits of P5.837 billion during the next five years, which profitability will be maintained during the succeeding years.