PNB posts lower net earnings

PHILIPPINE NATIONAL Bank (PNB) saw its attributable net income decline by 63.55% year on year to P11.53 billion in 2022 due to the absence of one-time gains realized the previous year.

The bank’s consolidated income dropped from the P31.63 billion seen in 2021, based on its financial statement disclosed to the local bourse on Thursday.

In 2021, PNB’s income included a one-off gain of P33.6 billion from the transfer of prime real estate properties in exchange for shares of PNB Holdings Corp.

The bank’s 2022 performance translated to a return on average equity of 7%, down from 19.98% the previous year. Return on average assets also declined to 0.99% from 2.62%.

PNB’s net interest income climbed by 7.15% to P37.33 billion last year from P34.84 billion in 2021.

Interest income on loans and receivables inched up to P34.42 billion from P34.16 billion the year prior.

Net earnings from service fees and commissions also rose by 5.29% to P5.57 billion from P5.29 billion.

The bank’s other operating income more than doubled to P9.18 billion from P3.58 billion amid higher gains from foreign exchange and the sale or exchange of assets that helped offset a net loss from trading and investment securities.

On the other hand, operating expenses rose by 8.49% to P28.37 billion in 2022 from P26.15 billion the year prior.

The bank’s total assets declined to P1.15 trillion from P1.19 trillion the previous year.

Loans and receivables went down to P593.1 billion from P606.95 billion.

Its gross nonperforming loan (NPL) ratio improved to 6.34% last year from 10.07%, while its net NPL ratio also went down to 2.58% from 5.27%.

On the funding side, deposit liabilities also dropped to P871.23 billion from P894.92 billion.

The bank’s capital adequacy ratio stood at 15.38% last year, up from 13.66% in 2021, while its common equity Tier 1 ratio climbed to 14.58% from 12.96%.

PNB’s shares dropped by 32 centavos or 1.68% to close at P18.72 each on Thursday.