PNB net profit climbs to P6.37 billion in Q1

PHILIPPINE National Bank (PNB) posted a 5% increase in its first-quarter earnings as higher core and other income offset losses from trading and foreign exchange.

The bank’s net profit climbed to P6.37 billion from P6.09 billion in the previous year, it said in a disclosure to the stock exchange on Monday. “This was supported by steady growth in core income, driven by higher loan volumes, disciplined balance sheet management, and prudent expense control.”

“Despite global economic headwinds, we delivered solid first-quarter progress on the back of a strong balance sheet and growing core income. We are building momentum with focused growth, tighter cost control, and improving asset quality — while continuing to push forward our digital and AI initiatives, regardless of the market cycle,” PNB President and Chief Executive Officer Edwin R. Bautista said.

“Our return on assets remained solid at 1.91% in the first quarter, reflecting efficient asset deployment and the benefits of a balanced loan mix that continues to support consistent earnings despite an uncertain rate environment,” PNB Chief Financial Officer Francis B. Albalate added.

Meanwhile, return on equity was at 10.8%, reflecting sustained profitability, the bank said.

Net interest income climbed by 6% year on year to P13.46 billion from P12.71 billion.

Its net service fees and commission income also rose by 6% to P1.51 billion from P1.42 billion.

“Despite a volatile interest-rate environment, the bank continued to expand its revenue base in a measured manner,” PNB said.

Its total loan portfolio grew by 15% year on year to P755.87 billion.

“Asset quality remained stable, with the nonperforming loan ratio recorded at 4.78%.”

Meanwhile, deposits were at P1.008 trillion at end-March, with 80% being low-cost current and savings accounts.

On the other hand, PNB booked a P229.88-million loss from trading and investment securities and foreign exchange in the first quarter versus the P862.267-million gain recorded in the same period last year.

As a whole, its total operating income climbed to P16.67 billion from P16.07 billion.

Meanwhile, operating expenses went up to P8.3 billion in the three-month period from P8.07 billion in the prior year.

Provisions for impairment, credit, and other losses stood at P225.673 million, down from P277.108 million previously.

PNB’s assets stood at P1.33 trillion as of March, while total equity was at P238.51 billion.

Its shares dropped by 10 centavos or 0.17% to close at P59.45 apiece on Monday. — BVR