Philippine National Bank (PNB) is looking to at least double its retail or consumer loan portfolio in the next three years.
Francis Albalate, PNB Chief Finance Officer, said the bank has ample capital to leverage on to improve profitability from a return to equity (ROE) perspective.
“PNB intends to increase its lending to retail customers to more than double what we have currently… and probably settle in the next three years at around 20 percent (of total loan),” said Albalate in a recent Philippine Stock Exchange investor day.
“We think and we believe that in the next three years, this will drive our profitability and will bring our ROE to be at par with the top three banks,” he added.
Albalate said PNB intends to capitalize on its high capital ratios — common equity tier 1 of 19 percent and capital adequacy ratio of 20 percent — to load up on more loans to consumers to improve profitability.
These high capital ratios would also allow us, and puts us in the best position, to really expand our consumer portfolio,” he said.
