Monday, 11 May 2009

Philippine National Bank Q1 net income rises by 59%

Gerard S. dela Pena

LUCIO Tan-led Philippine National Bank (PNB) on Monday reported a 59% increase in its net income for the first quarter of this year to P728 million from P457 million during the same period last year.

A sustained rise in lending volume and better earnings from its foreign exchange transactions lifted its profits for the period, the bank said.

Its net interest income went up by 61% to P2.1 billion from P1.3 billion, driven mainly by the 31% increase in its loans and receivables, as lending to corporate, consumers and small and medium enterprises expanded with new accounts and higher utilization of existing borrowers.

The bank's deposits for the period also grew by 11% from last year to P200 billion while net gains from foreign exchange transactions grew by 172% to P1.6 billion from P571 million.

The significant gains in its foreign exchange transactions offset the rise in its expenses, which were driven by higher retirement expense in line with its early retirement program ahead of its merger with Allied Banking Corp, the bank said. —

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