PNB posts P7.2B net income in 2016, up 14%

Lucio Tan-led Philippine National Bank (PNB) saw its net income increase by 14 percent to P7.2 billion in 2016 from P6.3 billion in 2015.

"The growth in net income was driven by a steady improvement in its core income, supplemented by non-recurring revenues," the bank said in a statement on Tuesday.

PNB's net interest income amounted to P19.6 billion, up 11 percent, accounting for nearly two-thirds of total operating income.

Loans and receivables grew by 17 percent to P428 billion on the back of 16-percent and 25-percent growth in  corporate and commercial lending, and a 10-percent increase in consumer loans.

Deposits reached P570.5 billion, up 17 percent due to higher low-cost deposits, which comprised more than half of total deposits.

"Even as lending activities accelerated, the bank’s asset quality remained solid as the non-performing loan (NPL) ratios declined further to 0.18 percent (net of valuation reserves) and 2.3 percent (at gross) from 0.25 percent and 2.6 percent, respectively," PNB EVP and Chief Financial Officer Nelson C. Reyes said.

Reyes noted that NPL coverage is now at 133 percent.

With a Capital Adequacy Ratio (CAR) of 16.7 percent and Common Equity Tier (CET) 1 ratio of 15.8 percent, which are well-above the minimum regulatory requirements, the bank said its consolidated capital position remained "strongly positioned to take on growth opportunities as well as withstand external shocks.” — John Ted Cordero/BM, GMA News