Profit of Philippine National Bank
The Philippine National Bank’s (PNB) net income rose by 61 percent to P3.54 billion in 2010 against year-ago’s P2.2 billion on account of higher non-interest income.
In a statement, the bank, the country’s fourth biggest in terms of assets, said its non-interest income expanded by 21 percent to P9.1 billion last year.
Also, it posted a double digit return-on-equity growth of 11 percent over the previous year’s seven percent on account of, among others, the 86 percent jump in its trading assets.
Net income from trading and investment securities grew more than twice to P3.03 billion but net interest margins was almost steady at P7.8 billion “as the increase in earning assets compensated for the reduction in spreads spawned by the market liquidity in 2010.”
The bank’s net loans and receivables also grew by double digit after at 10 percent.
Deposits grew by 6.6 percent to P226.44 billion driven by the low-cost savings deposits but interest expenses dropped by six percent year-on-year resulting to the nine percent improvement in the bank’s total operating income of P16.5 billion.
“The improved operating efficiency was reflective of the Bank’s productivity improvement efforts and the philosophy to generally align expenditures with the business it generates,” the bank said.