Tycoon Lucio Tan-led Philippine National Bank (PNB) doubled its six-month net profit this year to P5.4 billion compared to year-ago level on the back of higher interest earnings and hefty gains from the sale of idle assets.
PNB booked P4.4 billion in net gains in the first semester from the sale of foreclosed assets, up from only P216.6 million in windfall in the same period last year. Excluding these
nonrecurring gains, the growth in operating income still grew by 19 percent year-on-year.
Comprising almost two-thirds of total operating income, PNB’s net interest income rose by 27 percent year-on-year to P13.1 billion, driven by higher loan volumes and improving net interest margins.
The bank expanded its loan book by 16 percent year-on-year to P529.6 billion.
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Net service fees and commission income in the first half reached P1.68 billion, P61 million better than year-ago level, boosted by improvements in credit, deposit and bancassurance fees which offset the lower underwriting and investment banking revenues owing to the lackluster activities in the capital markets during the period.
Trading and foreign exchange gains, however, slipped to P795 million from about P1 billion a year ago. The decline was due to muted trading opportunities brought about by the upswing in interest rates.
