PNB posts lower net profit in the second quarter due to a one-time gain recorded last year

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National Bank of the Philippines (PNB) saw net profit plunge in the second quarter as last year’s proIft for the period included a one-off profit from its loss of control over PNB Holdings Corp.

Net profit attributable to the Tan-led lender stood at P8.24 billion in the second quarter, down 59.42% from the P20.31 billion recorded in the same period a year ago. year, based on its Iffinancial statement Ifconducted with the local stock exchange on Monday.

This brought the bank’s attributable net profit for the first half to 11.04 billion pesos, 50% lower than the 22.08 billion pesos recorded in the same period of 2021.

This translated into a return on equity of 11.4% in June, while the return on assets was 1.6%.

PNB said in its quarterly report that it recorded a drop in net profit in the second quarter and the first half due to a gain of P33.6 billion after the bank transferred real estate properties to PNB Holdings in in an exchange of property for shares.

Remove the one-o effectff transaction, PNB’s operating profit increased 20% year-on-year to 26.1 billion pesos in Iffirst half, the lender said.

“PNB continues to be profitable despite the challenging economic and pricing environment,” PNB Acting President Florido P. Casuela said in a statement.

“Our strategy is in place and we are pursuing a growth trajectory in a context of economic recovery. Our various businesses continue to focus on the needs of our customers while supporting the local economy,” he added.

The bank’s net interest income rose to 8.82 billion pesos in the second quarter, from 8.62 billion pesos, due to lower interest charges on deposits.

He said this was due to “higher interest earned on the Group’s investment securities, as well as lower interest incurred on deposits and other interest-bearing liabilities of the Group”.

The net interest margin was 3.4% in June, compared to 3.3% a year ago.

Meanwhile, PNB’s net income from service fees and commissions fell slightly by 2.2% in the last quarter, from 1.16 billion pesos to 1.13 billion pesos.

The bank’s other income also dipped to 5.86 billion pesos from 34.47 billion pesos. This, while trading and investment gains fell to 107.29 million pesos from 331.18 million pesos a year earlier. Net foreign exchange gains, on the other hand, jumped to 554.44 million pesos from 193.67 million pesos.

With that, PNB’s total operating income in the second quarter fell to 15.81 billion pesos from 44.25 billion pesos a year earlier.

On the other hand, the bank’s operating expenses in the second quarter increased from 6.7 billion pesos to 7.84 billion pesos. This was attributed to taxes related to the sale of property in the Port of Manila, as well as higher depreciation costs for properties leased from the bank. The leased buildings were the subject of the exchange of buildings for shares carried out last year.

Meanwhile, PNB loans and receivables decreased by 4.4% to 8.14 billion pesos in the second quarter, compared to 8.52 billion pesos in the same period of 2021 “in line with the cautious approach of the bank in deploying assets to optimize the use of its capital”.

The lender’s gross non-performing loan (NPL) ratio fell to 6.5% at the end of June from 11.5% a year earlier, while its net NPL ratio was 2.8% from 5.7% a year ago.

Its NPL coverage rate was 79.8% in June, down from 60.1% a year ago.

“Deposit liabilities, on the other hand, increased by 7% year-on-year to reach 885.5 billion pesos at the end of June 2022, due to the continued accumulation of current and savings accounts of the bank,” PNB said.

Consolidated GNP resources reached P1.2 trillion in June, mainly due to increased treasury assets.

Its capital ratio stood at 15.2% at the end of June, against 14% a year ago, while its common equity Tier 1 ratio also increased to 14.5% against 13.2%. These exceeded minimum regulatory requirements.

Shares of PNB closed at P18.50 apiece on Monday, up four centavos or 0.22% from its previous Iffinished. — KB Ta-asan

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