PNB income up 100% in 2009

MANILA, Philippines - The Philippine National Bank (PNB) has reported an unaudited net income of P2.2 billion, or double the P1.1-billion reported in 2008.

“Strong gains in its core businesses, improvement in asset quality, and higher operating efficiencies drove the bank’s banner financial performance in 2009,” it said in a statement.

Net interest margin rose by 18 percent to P7.8 billion from P6.6 billion in 2008. Interest income grew by 11 percent due to increased lending activities while interest expense inched up only by one percent.

Loans and receivables jumped by 14 percent. Consumer loans grew briskly with the active cross-selling of auto, housing and multi-purpose loans.

PNB likewise participated in several landmark deals to prime corporate and government credits in the telecommunications, energy and infrastructure industries.

Deposits surged by a hefty P13.5 billion for a seven-percent growth to P215 billion.

PNB sold P3.25 billion worth of five-year long-term negotiable certificates of deposits in the first quarter of 2009. Medium-term dollar and peso time deposits and renminbin savings and time deposits were also launched last year.

It posted P1.4 billion net gains from trading and investment securities gains following the recovery in the mark-to-market valuation of securities held for investment. Miscellaneous income improved by 22 percent to P1.9 billion due largely to the higher profits on sale of foreclosed properties.

“As a result, total operating income rose by 23 percent,” it said in the report.

Non-performing loan (NPL) cover settled at 88 percent versus the 82-percent in 2008. NPL ratio slid to 5.9 percent.

Consolidated resources amounted to P284.5 billion, up by three percent, while its capital adequacy ratio (CAR) stood at 19 percent.

PNB also build up its earnings asset incuding a P2.8-billion equity investment in Allied Commercial Bank in Xiamen, China. Allied Banking Corp. and PNB, which together control 90 percent of the China-based bank, are the first Philippine banks to acquire a stake in a locally-incorporated commercial bank in China.