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Keisha Ta-Asan - The Philippine Star
April 29, 2025 | 12:00am
In a disclosure, the Lucio Tan-led lender reported a core income of P14.1 billion during the January to March period, 10 percent higher than a year ago, as net interest income rose by nine percent to P12.7 billion.
Philstar.com / Irra Lising
MANILA, Philippines — Philippine National Bank (PNB) grew its net income by 15 percent to P6.1 billion in the first quarter, bolstered by higher margins from loans and treasury assets as well as stronger trading gains.
In a disclosure, the Lucio Tan-led lender reported a core income of P14.1 billion during the January to March period, 10 percent higher than a year ago, as net interest income rose by nine percent to P12.7 billion.
PNB attributed the increase to the expansion of its loan book and investments in treasury assets, helping lift net interest margin.
“The first quarter financial results this year reflect the strength of PNB’s franchise in its wholesale and retail businesses,” PNB president Florido Casuela said.
“Excluding the impact of non-recurring gains from the sale of foreclosed assets, the growth in the bank’s core income continued to drive the bank’s earnings momentum,” he said.
Other income climbed to P1.9 billion in the first quarter, supported by gains from trading, foreign exchange transactions and the sale of foreclosed assets.
Operating expenses also went up by 10 percent to P8.1 billion as the bank ramped up efforts to grow its consumer lending segment. Higher taxes and licenses also weighed on costs due to increased business activity.
Meanwhile, provisions for impairment losses fell sharply by 55 percent to P277 million, reflecting better asset quality through improved credit underwriting and management practices.
“We expect that the quality of the bank’s earnings will further improve since we have already put in place the necessary foundation for the bank’s sustained stability and accelerated growth,” Casuela said.
PNB’s total assets stood at P1.28 trillion as of end-March, up by two percent from end-2024, while net loans and receivables rose to P655.9 billion. Deposit liabilities reached P988.3 billion.
Moody’s Ratings recently upgraded PNB’s credit rating to Baa2 with a stable outlook, citing improved core profitability, robust capital and solid liquidity buffers that mitigate modest asset quality.
