PNB says Q3 profit up 92.5%; no approval of BPI deal yet
MANILA, Philippines - Lucio Tan-led Philippine National Bank (PNB), which is in talks with the Ayala group for a merger deal, reported a 92.5% jump in its third-quarter net income to P3.8 billion, boosted by higher trading gains.
In a statement on Friday, November 23, PNB said its total operating income grew 32% to P14.1 billion, accounted for by "improvements in interest income from loans and receivables, reduction in interest expense and net gains from trading and investment securities."
PNB said it booked a net gain of P4 billion from trading and investment securities, 13 times higher than the P315.2 million it recorded in the third quarter of 2011.
Interest income on loans and receivables grew 3% to P184 million, while interest expense fell 19% owing to efforts to generate low-cost deposits.
As of September 30, PNB had a capital adequacy ratio of 17.8%, much higher than the central bank's minimum requirement of 10%. It also had total resources of P320.7 billion.
PNB is awaiting regulatory approvals of its merger with another Lucio Tan bank, Allied Banking Corp.
It is also in talks with Ayala-owned Bank of the Philippine Islands (BPI) for a merger deal to create possibly the country's largest bank by assets.
In a disclosure to the Philippine Stock Exchange on Friday, PNB said the deal with BPI has yet to be approved by its board of directors.
"There has been no proposal presented to or approved by the board since there has been no formal agreement reached among the shareholders of the banks at this time," it said. - Rappler.com