Philippine National Bank (PNB), the financial arm of tycoon Lucio Tan, posted an 18-percent net income growth to P21.2 billion in 2024 on the back of a double-digit growth in net interest earnings.
Return on equity rose to 10.39 percent from 9.95 percent in 2023.
The bank’s net interest income, which accounted for 83 percent of its total operating income, reached P49.3 billion, up 11 percent from the previous year.
The growth was mainly due to a 13-percent hike in interest income from higher lending and investment activities as well as improved yields.
The bank also saw a 7-percent increase in its current account savings account deposits, which now account for 84 percent of its deposit liabilities.
Net interest margin (NIM) improved to 4.5 percent from 4.23 percent in 2023.
Fee-based income rose 4 percent to P5.5 billion, driven by an increase in transaction volumes across loans, credit cards, deposits and trade.
“We are very pleased with what the bank has achieved in terms of its financial results, which, in particular, showed a solid core income as the driver for the Bank’s bottom line. In particular, we were successful in increasing our NIM, supported by broad-based loan expansion as well as efficient deployment of funds,” said PNB president Florido Casuela.
Trading and foreign exchange gains amounted to P1.8 billion, a 3-percent increase. Despite lower volatility and liquidity in the foreign exchange market, the bank capitalized on market opportunities.
The sale of foreclosed assets contributed P2 billion to the bank’s net income, although this was lower than in 2023.
Operating expenses increased 4 percent to P29.6 billion, and the bank’s cost efficiency ratio remained at 49.6 percent.
PNB’s total assets were valued at P1.3 trillion as of Dec. 31, 2024, a 4-percent year-on-year increase, supported by higher loans and investments.
“2024 marks another milestone for the bank as our net income continued its growth trajectory on the back of robust net interest income, prudent expense management, and lower credit provisions,” said Casuela.
“The bank’s performance indicates that our strategic initiatives are gaining traction that will solidify our market position among the leading banks,” he said.
