Philippine National Bank (PNB) registered total revenues of P23.6 billion for the first half of 2020, 24% higher compared to its revenues for the same period last year, driven by continuous growth in lending and trading activities despite the COVID-19 pandemic. Net profit before provisions for impairment and taxes improved by 70% year-on-year.
PNB’s net interest income increased by 19% to P17.5 billion from year-ago level of P14.7 billion, on account of reduced high-cost deposits. PNB sustained its growth in loan receivables, which now stand at P602.6 billion, better by 1% from prior year. Deposit liabilities also expanded to P790.7 billion as of end-June 2020, a 2% increase from year-ago balance.
As favorable market opportunities continue during the second quarter of 2020, PNB recorded further improvements in trading securities gains, which now amounted to P3.2 billion, up by 78% year-on-year.
Operating expenses, excluding provisions for impairment and credit losses, totaled P13.4 billion, up 2% as compared to the same period last year, as robust revenue streams translated to higher business taxes and other business-related expenses.
PNB continued to consider the evolving economic impact of the uncertainties brought about by the COVID-19 pandemic. As a result, the Bank booked additional impairment provisions of P5.1 billion during the second quarter of the year, bringing the total provisions to-date to P8.4 billion. After provisions, net income for the first half of the year amounted to P1.4 billion, down from almost P4.0 billion for the same period last year. PNB is proactively implementing measures to mitigate any risks to its portfolio brought about by the pandemic and to further strengthen its security positions.
PNB President and CEO Wick Veloso said. “For the rest of the year, we will continue to focus on tactical strategies ensuring uninterrupted service to its customers, strengthening its liquidity and capital positions and enabling the bank to actively participate in reviving the economy.” he added.