PVB says trading gains helped lift net income to P218.69M in 1^st four mos.

Philippine Veterans Banks on Friday said trading gains and strategic management of foreign exchange and investment portfolio boosted its income during the first four months of the year.   A shift in the bank’s source of revenues from income from interest to trading gains gave PVB a healthy bottomline, said Mike Villareal, PVB vice president for corporate communications, told GMA News Online. The shift is inline with the drop in interest rates, considering that corporate loans carry around 4.7 percent in gross yield for the bank and 7 percent from retail loans, Villareal noted.   The bank posted P218.69 million in net income as of end-April 30, the bank said in a statement Thursday.   Its earnings reflected gains in core businesses, including corporate deposits and lending, trading gains and strategic management of foreign exchange and investment portfolio, said bank president Ricardo Balbido Jr.   “Veterans Bank’s total resources were pegged at P57.38 billion while capital funds stood at P5.68 billion as of end 2011, based on audited financial statements,” said Balbido.   “Total resources slightly dipped by 3 percent from P58.24 billion in 2010 to P57.38 billion in 2011. Capital, however, moved up slightly by 5.5 percent to P5.68 billion from the previous year’s P5.465 billion,” he added.   The bank’s capital adequacy ratio (CAR), a measure to determine a bank’s capability to shoulder risks, stood at 16.15 percent under Basel II, PVB reported, saying “… this is still well above the 10 percent minimum requirement of the Bangko Sentral ng Pilipinas.”   Total assets grew by P2.8 billion to P60.18 billion, while total deposits reached P48 billion, according to PVB.   PVB is a private commercial bank owned by some 400,000 Filipino World War II veterans and their designated heirs. Part of its mandate is to provide 20 percent of its annual net income to the board of trustees of the Veterans of World War II, which in turn manages programs for the benefit of the veterans, their widows, orphans and heirs. —GMA News