The Market Monitor Minding the Nation's Business
By Riza Lozada
The Philippine National Bank (PNB) reported a group profit of P4.7 billion for the first nine months ending September, which was P1 billion higher than the figure posted a year ago.
PNB reported a net interest income of P13.2 billion for the period, or a P0.6-billion increase from last year, mainly due to the expansion in its loan portfolio.
Total interest income was up by P1 billion from P15.3 billion to P16.3 billion. Total interest expense, however, was also higher at P3.1 billion, or by P0.4 billion from P2.7 billion last year, hence an improvement in its net interest margin.
Other incomes slightly declined to P3.9 billion from P4 billion, compared with the same period last year, due to a P700-million trading gain recognized last year on the sale of minority equity holdings and the continued reduction in treasury-related income in the current year.
Growth in gains from sale of foreclosed assets of P0.6 billion in the current year also supplemented other income.
Total comprehensive income for the first three quarters amounted to P4.6 billion, from P3.9 billion for the same period last year.
Current year’s comprehensive income came mainly from the net income totaling P4.7 billion.
Profitability indicators, according to a PNB disclosure, are the return on equity at 6.2 percent during the given period, compared with last year’s 5.5 percent, return on assets at 1 percent from 0.8 percent and net interest margin at 3.2 percent from 3.1 percent.
Reporting further on the key performance indicators, PNB said its consolidated risk-based capital adequacy ratio (CAR) and Tier 1 ratio computed based on Bangko Sentral ng Pilipinas (BSP) guidelines were 20.26 percent and 17.15 percent, respectively, as of September 30, and 20.61 percent and 17.43 percent, respectively, as of December 31, 2014.