Lucio Tan-owned PNB nets P5.5B in 2014

MANILA, Philippines – The Philippine National Bank (PNB) reported Friday, April 17, that it posted a net income of P5.5 billion ($124.07 million) for 2014, a 5% increase from 2013’s level.

PNB said though that the bank’s trading gains declined 72% to P1.3 billion ($29.32 million), citing challenging conditions in the local financial markets.

The fourth largest private commercial bank said it anticipated this development thus its decision to shift marketing focus from large corporates to commercial/small and medium enterprises (SMEs) and consumer segments as a means of beefing up its income.

The efforts resulted in interest income on loans and receivables growing by 16% to P15.2 billion ($343.87 million). 

PNB also decreased its interest expense by 23% to P3.6 billion ($81.21 billion) as the bank concentrated on generating low cost funds and paid off high cost liabilities, particularly with the redemption of its P6.7 billion ($151.14 million) high interest-bearing, long-term negotiable certificates of deposits (LTNCDs). 

Thus net interest income grew by 23% to P16.9 billion ($381.18 million) or 64% of total operating income in 2014. 

Other income

PNB’s operating income increased by 12% to P26.4 billion ($554.89 million), augmented by other income (excluding gains from securities trading) which rose by 33% principally from the sale of PNB’s foreclosed assets.

By end-2014, PNB’s total consolidated resources expanded to P625.4 billion ($14.10 billion), up P9.2 billion ($207.47 million) from year-ago level. 

Non-performing loans (NPL) ratio also decreased to 0.92% from 1.39% in December 2013. NPL coverage ratio improved to 99.19% from 90.84% in the same period in 2013.

The bank ended 2014 with a Capital Adequacy Ratio (CAR) of 20.6% and a CET 1 ratio of 17.4% – well above the minimum 10% and 8.5% required by the Bangko Sentral ng Pilipinas (BSP).

Further supporting its anticipated asset growth, PNB also embarked on another fund raising activity by end-2014 through the successful issuance of P7 billion ($157.84 million) worth of LTNCDs and was celebrated with a bell ringing ceremony to mark the first time that PNB listed peso-denominated LTNCDs at the Philippine Dealing Exchange.

Improving customer service

PNB also expanded its remittance services by partnering with US-based Wells Fargo & Company, which has more than 9,000 stores and 12,500 ATMs across 39 states in the US.

In 2014, PNB was also recognized as the Outstanding PhilPass Remit Participant by the BSP for its remittance volume sent via BSP’s Philippine Payments and Settlement System (PhilPass). 

PNB also introduced e-banking solutions to meet the evolving needs of its clients. In partnership with the Bureau of Internal Revenue (BIR), it launched the BIR Interactive Form System (PNB iTax), dubbed as the first online tax payment service introduced in the country.

It also embarked on a rebranding program to remodel its retail branches, equipping such with improved amenities, spacious interiors, and more efficient space layout.

The Lucio Tan-owned bank said the efforts are aimed to reinvigorate its image in order to retain its existing clientele and, at the same time, attract new and younger customers.

As of end-December 2014, PNB had a total of 657 branches and 878 ATMs nationwide. In addition, PNB has international footprint across Asia, Europe, Middle East, and North America with 77 overseas branches and offices among Philippine banks. – Rappler.com