The Philippine National Bank posted a consolidated net income of P15.1 billion for the first nine months of 2024, 12 percent higher compared to its earnings for the same period last year at the back of robust growth in net interest income.
“The Bank’s core revenues steadily increased as we continue to enhance our policies and processes to sustain the growth momentum of the Bank’s core banking activities amidst continued economic expansion,” said Francis Albalate, Chief Financial Officer of PNB.
Comprising 83 percent of total operating income, the bank’s net interest income increased by 10 percent year-on-year to P36.5 billion, sustained by the 15 percent growth in interest income arising from the expansion in loans to customers as well as investments and other liquid placements, combined with improvement in the yields.
On the other hand, the higher interest expense on deposits was contained by deploying these deposits to fund assets with better yields.
Meanwhile, the bank’s other operating income reached P4.1 billion for the period ended September 30, 2024, lower than the year-ago level that included gains from the sale of foreclosed assets amounting to P3.7 billion.
Excluding these non-recurring gains on the sale of foreclosed assets, the increase in other operating income remains high at 31 percent year-on-year, boosted by superior trading income anchored on strategic positioning and timely churning of books.
Operating expenses slightly increased by one percent to settle at P21.7 billion as solid revenue growth translated to higher business taxes and other business-related expenses.
The bank set aside additional credit provisions of P3.7 billion during the period, albeit lower than year-ago level as the Bank’s asset quality kept on improving.
As of September 30, 2024, the bank’s total consolidated assets stood at P1.20 trillion, two percent higher than a year-ago level, and is attributed to the increase in loans and treasury assets.
The bank’s reported income for the period raised its total equity by 13 percent year-on-year to reach P210.1 billion. The Parent Bank’s Capital Adequacy Ratio stands at 17.8 percent and Common Equity Tier 1 Ratio is at 16.9 percent which are way above the minimum regulatory requirements.
Philippine National Bank is one of the country’s largest private universal banks in terms of assets and deposits.
