PNB income drops 39% in H1

MANILA, Philippines - Philippine National Bank (PNB) has reported a 39-percent drop in net income to P3.2 billion for the first six months of 2014, from P5.3 billion realized in the same period last year, due to the extraordinary trading gains booked a year ago. 

Nevertheless, sustained growth in core business resulted in a net interest income rising 39 percent to P8.4 billion. 

Interest income on loans and receivables increased 18 percent to P7.4 billion, supported by a steady growth in its loans portfolio particularly consumer loans.  

Interest expense declined 65 percent to P1.8 billion with the redemption of PNB’s P3.25 billion long term negotiable certificate of deposits (LTNCD) and the P11.5-billion unsecured subordinated debt.

Fee-based income contributed P1.3 billion, fueled by the expansion of the remittance business and rationalization of fees and charges on bank services. 

PNB partnered with US-based Wells Fargo & Co. last July. Wells Fargo has an extensive network of more than 9,000 stores and 12,500 automated teller machines (ATMs) across 39 states in the US. 

PNB ended the first half of the year with consolidated assets reaching P601.8 billion.  Asset quality continued to improve. 

Non-performing loans (NPL) net of valuation reserves settled at P3 billion as of June 30, 2014 with net NPL ratio at 1.2 percent.

In the first quarter of the year, PNB successfully generated P11.6 billion in fresh capital from its stock rights offering.

By end-June 2014, consolidated equity stood at P89.3 billion translating to a capital adequacy ratio (CAR) of 18.8 percent and Tier 1 ratio of 15.5 percent, well within regulatory limits.

PNB operates 656 branches and 883 ATMs strategically located nationwide.

It has the most extensive international presence among Philippine banks with 77 overseas branches, representative offices, remittance centers, and subsidiaries in key cities in the United States, Canada, Europe, the Middle East, and Asia.