PNB net profit rebounds in 2021


PHILIPPINE NATIONAL Bank (PNB) has reserved a higher net income last year, supported by gains from the sale of properties and higher fee income, which offset lower interest income.

The Tan-led lender’s net profit reached 31.69 billion pesos in 2021, more than 12 times the 2.625 billion pesos recorded in 2020, based on its aufinancial statements filed with the local stock exchange Wednesday.

This translated into a return on equity of 19.98%, compared to 1.69% a year earlier. Return on assets also improved to 2.62% from 0.22%.

Net interest income for the year fell 2.7% to 34.844 billion pesos from 35.82 billion pesos in 2020.

PNB interest income on loans and receivables fell by 8.6% to 34.157 billion pesos, while interest expense fell by almost a third to stand at 34.157 billion pesos. 7.557 billion pesos.

On the other hand, income net of service fees and commissions increased by 42.9% to reach 5.288 billion pesos against 3.701 billion pesos.

Meanwhile, the bank’s foreign exchange earnings fell 19 percent to 743.549 million pesos, while trading and investment earnings fell 78 percent to 731.572 million pesos.

PNB’s operating profit jumped 70% to 76.996 billion pesos from 45.308 billion pesos.

“Complementing the bank’s core operating income is a gain of 33.4 billion pesos from the property-for-equity swap concluded during the year with PNB Holdings Corp. This is part of a series of transactions that aim to monetize the value of the bank’s low-income assets,” PNB said in a statement.

Meanwhile, operating expenses fell 12.81 percent to 39.025 billion pesos from 44.759 billion pesos. The drop is mainly due to lower provisions for loan losses, which decreased by 23.7% to reach 12.879 billion pesos in 2021.

Meanwhile, PNB’s loan portfolio grew by 1% to reach P607 billion at the end of 2021. Its total assets stood at P1.19 trillion.

“As part of its ongoing strategy to reduce its non-performing loans (NPLs), the bank sold some NPLs in 2021 with gross book values ​​before the sale of 5.5 billion pesos, resulting in a gain on the sale of 767 million pesos,” the bank said. .

Its gross NPL ratio stood at 10.07% at the end of 2021.

On the funding side, the bank’s total deposits increased by 0.5% to P894.9 billion at the end of 2021.

PNB’s capital adequacy ratio was 13.66%, while its Tier 1 common equity ratio stood at 12.96%. Both are above the minimum required by the central bank.

Shares of the lender closed at P19 apiece on Wednesday, up 24 centavos or 1.28%. — Luz Wendy T. Noble

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