Philippine National Bank (PNB) has announced a significant 19 percent increase in its consolidated net income for the first nine months of 2023, reaching P13.5 billion. This notable growth is primarily driven by an expansion in core lending activities and a boost in fee-based operations.
The bank's net interest income saw a substantial rise of 23 percent, totaling P33.0 billion, fueled by an increase in loan volumes coupled with an improved net interest margin of 4.2 percent. PNB's strategic focus on corporate loans and its venture into commercial and retail lending sectors have led to a 4 percent uptick in gross loans since December 2022, now standing at P635 billion.
PNB also reported a healthy growth in deposit liabilities, which climbed by 5 percent, thanks to the bank's efforts in strengthening its Current Account Savings Account (CASA) portfolio and offering competitive deposit products to customers. The bank’s emphasis on customer-centric services was further recognized as its PNB Digital App won the "Philippines Digital Experience of the Year—Banking" award at the Asian Experience Awards 2023.
In line with this upward trajectory, PNB managed to curtail operating expenses by 4 percent year-on-year, amounting to P21.4 billion, despite the ongoing business expansion. This prudent financial management was accompanied by setting aside additional provisions of P5.2 billion as a buffer against uncertainties that may arise in 2023.
By the end of September 2023, PNB's consolidated assets had increased by 3 percent from December 2022, reaching P1.18 trillion, propelled by higher loans and investment securities. Total equity also experienced a robust increase of 10 percent year-on-year. The bank remains financially solid with a capital adequacy ratio of 16.6 percent and a common equity tier 1 ratio of 15.7 percent, both well above regulatory requirements.
PNB President Florido P. Casuela highlighted the bank's commitment to profitability and operational efficiency while continuing to serve customer needs during the economic recovery phase. The bank's performance reflects its strategic initiatives that have effectively harnessed market opportunities despite prevailing challenges.
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