The Philippine National Bank (PNB) posted significant gains in its assets as it breached the trillion-peso mark on Tuesday.
In a regulatory filing, PNB said this marks another milestone for the bank owning resources totaling P1.03 trillion as of end-March 2019.
“The (PNB) achieved a milestone with total resources reaching P1.03 trillion at the end of March 2019, up P176 billion or 21 percent compared to year-ago,” the bank said.
“The bank reported consolidated net income of P1.9 billion for the first three months of 2019, 30 percent higher compared to P1.5 billion reported in the same quarter in 2018, at the back of robust growth in total operating income,” it added.
PNB president and CEO Wick Veloso drew parallels to the country’s expanding growth path, particularly the ongoing infrastructure buildup program pursued in earnest by the government.
“We see a lot of activity in many of our branches nationwide. Robust corporate and consumer business is expanding and asset quality remains strong,” Veloso said.
“The growth of the economy continues to be solid and PNB is well positioned in key growth areas around the archipelago to capture more opportunities,” he added.
According to him, the growth in PNB’s operating income is owed to improvements in net interest income and trading and foreign exchange gains.
“The bank’s net interest income increased to P7.1 billion from P6.4 billion reported in the same period last year on the back of expansion in loans to customers and trading and investment securities,” PNB said.
“Loan balances grew to P588.9 billion as of March 2019, 17 percent better than March 2018 while trading and investment securities increased by 62 percent year-on-year to P188.4 billion,” he added.
Operating expenses, excluding provisions for impairment and credit losses, on the other hand, grew 13 percent over the same period a year ago as strong revenue growth translated to higher business taxes and other business-related expenses.
Total equity spiked by P12 billion to P133 billion from last year’s levels.
Veloso reiterated the bank’s commitment to sustain growth over the long horizon.
“We are committed to doing things in a more efficient way as we push safe aggressive growth,” Veloso said.