Philippine National Bank (PNB) posted a net income of P5.3 billion in the first three months of 2024, up by 10 percent against the same period last year.
Core income for the first quarter of 2024 amounted to P12.9 billion, increasing by 7 percent from the same period last year, with net interest margin growing by 12 percent year-on-year to P11.7 billion.
This is mainly due to the combined effect of the increase in the Bank’s loan portfolio and better yields which increased by an average of 47 bps. The Bank was also able to mitigate the effect of higher cost of deposits and increase in deposit volume by reducing its high-cost funding.
Other income declined from P3.4 billion in Q1 2023 to P1.2 billion in Q1 2024 mainly due to the substantial ROPA sale recognized by the Bank a year ago.
Operating expenses were lower by 8 percent at P7.3 billion, highlighting the Bank’s ability to manage its costs.
Provision for impairment losses is at P620 million, 62 percent lower than the year-ago level, as the bank’s loan portfolio fully recovered from the lingering effects of the pandemic as the economy maintains its growth trajectory to pre-pandemic level.
Total assets as of March 31, 2024 amounted to P1.196 trillion, 1 percent lower than the December 31, 2023 level. Net loans and receivables remain stable at P610.0 billion level and deposit liabilities at P916.4 billion.