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Business

PNB profit up 17.6% to P1.8 billion in 1st half

- Ted P. Torres -

MANILA, Philippines - Lucio Tan-owned Philippine National Bank (PNB) boosted its net income in the first semester of 2010 by 17.6 percent to P1.8 billion from P1.53 billion in the same period last year, the bank said in a statement.

Bank officials attributed the strong performance to the robust growth in deposits and treasury operations, prudent lending, and improved operating efficiencies.

Total deposits gained a hefty P10 billion to close at P224.4 billion by the end of the semester, as the share of low-cost deposits to the total deposit mix further improved, which brought down the average effective cost of funds.

 “Likewise, the branches’ strategy of intensified cross-selling and diversification of the customer base added to the improved deposit mix,” said Eugene S. Acevedo, PNB president and chief executive officer.

Consolidated loans and receivables registered at P119.5 billion, up 14 percent from the yearend 2009. 

 “During the period, lending rates were generally lower as the market remained very liquid. Fresh bookings from new corporate, small business and retail clients buoyed lending activities amidst scheduled paydowns from large corporate customers,” Acevedo added.

PNB’s non-performing loan (NPL) ratio dropped further to 4.4 percent from 6.2 percent in the first quarter of 2010. Likewise, NPL cover rose from 87.6 percent to 91.3 percent by the end of June.

Net interest income by the end of the first semester stood at P 3.8 billion, slightly lower by 10 percent year-on-year. Higher service fees, commission income and trading gains compensated for the slight dip in net interest earnings.

Acevedo explained that fee-based income was higher at P1.2 billion owing to higher contributions from remittance, cash management services, trust operations and bancassurance.

Trust assets grew 16 percent, and remittance value turnover was higher by four percent year-on-year. Trading gains likewise shored up profits as it surged a whopping 127 percent to P605 million. 

Recently, PNB sealed a bancassurance partnership with PNB Life Insurance Inc. to provide its customers with innovative life insurance packages.

Total resources closed strong and higher year-on-year at P297.4 billion and stockholders’ equity of P29.7 billion, based on financial statements consistent with regulatory accounting policies.

PNB’s risk-weighted capital adequacy ratio under Basel II remained formidable at 18 percent.

PNB said it expects to continue its performance momentum in the second half of 2010 as it aims to spring back among the top three banks in the country.

Product offerings are being rationalized and aligned for leadership position in the market. Programs to improve on customer service are revitalized to improve on overall customer experience at various touch points. Alliances with strategic partners continue to be pursued for wider market coverage. 

vuukle comment

ACEVEDO

BASEL

BILLION

EUGENE S

LIFE INSURANCE INC

LUCIO TAN

PHILIPPINE NATIONAL BANK

PNB

YEAR

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