PNB 2024 net income rises 18%; CAR at 20.1%
PHILIPPINE NATIONAL Bank’s (PNB) net income rose 18% year on year to P21.2 billion last year as its core business continued to grow.
The lender’s financial results “showed a solid core income as the driver for the bank’s bottom line,” it said in a statement on Wednesday.
Its common equity Tier 1 ratio and capital adequacy ratio (CAR)was 19.21% and 20.1%, respectively, it added.
Higher net interest margin was supported by broad-based loan expansion and efficient deployment of funds, PNB President Florido P. Casuela said in the statement.
PNB did not provide fourth-quarter financial figures and its financial statement.
The bank’s 2024 performance translated to a return on equity of 10.39%, up from 9.95% in 2023.
Net interest income, which accounted for 83% of PNB’s total operating income, rose 11% year on year to P49.3 billion. This resulted in a net interest margin of 4.5%, up from 4.23% in 2023.
Noncore income was lower in 2024 due to one-off gains from the sale of foreclosed assets in 2023, the bank said. Excluding this, noncore income would have grown 31% year on year.
“While lower than in 2023, the bank also continued to aggressively dispose of its foreclosed assets in 2024 and contributed P2 billion to the bank’s bottom line,” it added.
Fee income increased 4% to P5.5 billion amid higher transaction volumes from loans, credit cards, deposits and trade.
Trading and foreign exchange gains also rose 3% to P1.8 billion “as the bank was able to capitalize on market opportunities, despite the thinner volatility and liquidity in the foreign exchange market during the year.”
Operating expenses increased 4% to P29.6 billion, resulting in a cost-to-income ratio of 49.6%.
Current account and savings account deposits rose 7% year on year, accounting for 84% of PNB’s total deposits.
The lender’s total assets increased 4% to P1.3 trillion due to higher loans and investment portfolio. Total equity stood at P216.6 billion, up 13% from 2023.
PNB shares fell 0.93% or 30 centavos to close at P32.10 each. — Aaron Michael C. Sy
