PNB books P2.81 billion in Q1, up 57%

Lucio Tan-led Philippine National Bank (PNB) saw its bottom line grow by double-digits during the first quarter of 2022, primarily due to improved net interest income and net reversals of credit provisions booked during the period.

In a disclosure to the Philippine Stock Exchange on Friday, PNB reported a net income of P2.81 billion, up 57% from P1.79 billion in the same period last year.

The double-digit earnings growth was due to the bank’s net interest income of P8.5 billion, up 3% year-on-year “due to higher yields on loans, alongside reduced interest costs on deposits.”

Gross loans as of end-March 2022 closed at P583.9 billion, down by 7% from the level last year, as the bank continued to refocus on borrowers under financially resilient industries.

Meanwhile, PNB said deposit liabilities expanded to P869.9 billion, up 3% from a year ago, due to build-up of current and savings accounts.

During the first quarter of 2022, the bank added it recognized net reversals of credit provisions of P394 million to take into consideration the improvement in the credit status of borrowers of the bank who are gradually recovering from the pandemic.

“Our performance in the first quarter is a good indicator that the profit-making potential of PNB's businesses continue to improve as the overall economy improves,” said PNB President and CEO Wick Veloso.

“We support the incoming leadership and will channel our efforts to help support our customers and support the rebounding economy,” added Veloso. — DVM, GMA News