PNB’s full-year profit puffed up to P21.2B in ’24
Taipan Lucio Tan-led Philippine National Bank (PNB) recorded an 18-percent climb in its earnings last year to P21.2 billion on growth in its core businesses, particularly lending.
PNB said in a regulatory filing on Wednesday that its net interest income went up by 11 percent to P49.3 billion, buoyed by a 13-percent rise in lending and investment activities, as well as higher yields.
Income from PNB’s fee-based business, which includes loans, credit cards, deposits and trade, inched up by 4 percent to P5.5 billion.
Trading and foreign exchange gains reached P1.8 billion, up by 3 percent.
PNB’s financial performance resulted in a return on equity of 10.39 percent, improving from 9.95 percent previously.
Operating expenses were higher by 4 percent at P29.6 billion on the back of costs related to compensation and fringe benefits, and taxes and licenses.
“The bank’s performance indicates that our strategic initiatives are gaining traction that will solidify our market position among the leading banks,” PNB president Florido Casuela said in their disclosure.
As of end-December, PNB’s total assets reached P1.3 trillion, up by 4 percent.
Last October, PNB raised $300 million from its first offshore bond program in five years, beefing up its coffers for financing requirements amid lower interest rates.
3.6X oversubscribed
The bonds, which have a tenor of five years, had a fixed coupon rate of 4.85 percent. This represents the interest payment that lenders will receive until the bond matures.
The offering was 3.6 times oversubscribed, with demand from global investors reaching $1.1 billion.
This came after the Bangko Sentral ng Pilipinas began its easing cycle. Rate cuts typically make fixed-income securities, such as bonds, more attractive because these signal better economic conditions, thus boosting investor confidence.
PNB’s bond offer was also part of its $2-billion Regulation S euro medium-term note program.
These types of notes refer to debt securities offered and sold outside the United States and give users the flexibility to tailor their issuance to their specific funding needs.
