Wednesday, 25 November 2009

Allied Bank net income rises five times from last year to P413.3M for third quarter

Erik de la Cruz
Business Mirror

TYCOON Lucio Tan’s Allied Banking Corp. posted a net income of P413.3 million for the third quarter, more than five times what it earned in the same period last year as interest income improved.

Its financial statement filed with regulators showed net income of P888.5 million in the first nine months, up 81 percent over last year’s P489.7 million.

Allied Bank, the country’s ninth-largest bank in terms of deposits as of end-June, said net interest income in the third quarter swelled by 10.4 percent to P1.56 billion due to the increase in loans and receivables.

The bank’s asset base expanded by 10.4 percent to P182 billion as of end-September from a year ago, reflecting the hike in loans and receivables by over P19 billion. Its nonperforming loans (NPL), however, increased by P507 million to P2.37 billion. Its NPL ratio thus inched up to 2.09 percent, from 1.9 percent a year earlier.

Total liabilities climbed by 8.6 percent to P157.9 billion, with deposit liabilities up 12.1 percent. The bank last month expanded its deposit base by issuing long-term negotiable certificates of time deposit (LTNCD) with a five-year maturity in the amount of P3.5 billion.

In March Philippine National Bank (PNB)—another Tan-owned bank—raised P3.25 billion by offering LTNCD with a five-year maturity. Proceeds were used for general corporate purposes and banking operations.

Allied Bank and PNB are scheduled to merge next year, with PNB as the surviving entity. Their union is expected to catapult PNB toward becoming the fourth-largest local bank in terms of assets and give strong competition to the three biggest—Banco de Oro Unibank, Metropolitan Bank & Trust Co., and Bank of the Philippine Islands.

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