PNB books 10.4% growth in Q1 income

MANILA, Philippines — Philippine National Bank (PNB) of tobacco and airline magnate Lucio Tan booked a 10.4-percent increase in earnings to P5.31 billion in the first quarter from a year-ago level of P4.81 billion, boosted by core business growth and lower credit provisions.

The listed bank reported a 7.3-percent rise in core net income to P12.88 billion from January to March compared to P12 billion in the same period in 2023.

Broken down, net interest income jumped by 7.3 percent to P11.69 billion from P10.45 billion, while net service fees and commission income dropped by 23.9 percent to P1.18 billion from P1.55 billion.

The bank’s total other income plunged by 65 percent to P1.19 billion from P3.4 billion amid lower net gains on trading and investment securities.

PNB’s total operating income decreased by 8.7 percent to P14.06 billion from P15.4 previously, mainly due to lower provision.

Provision for impairment, credit and other losses reached P619.76 million versus P1.61 billion a year ago.

The bank’s operating expenses were also lower by 7.6 percent to P7.34 billion in the first quarter from P7.94 billion in the same period in 2023.

The assets of the Tan-led bank slipped by 1.7 percent to P1.19 trillion in end-March from P1.21 trillion a year ago.

PNB’s loans and receivables stood at P609.95 billion in end-March, while its deposit base reached P916.39 billion.

The bank has over 630 domestic branches as well as 72 overseas branches, representative offices, remittance centers and subsidiaries in 17 locations in Asia, North America and Europe.