Philippine National Bank Reported P5.3 Billion in Net Income in Q12024, up 10%

Philippine National Bank (PNB) reported a net income of P5.3 billion in the first three months of 2024, up 10% from the same period the previous year.

Core income for the first quarter of 2024 was P12.9 billion, up 7% from the same period last year, while the net interest margin increased by 12% to P11.7 billion. This is mostly due to the combined effect of growth in the bank's loan portfolio and higher yields, which grew by an average of 47 basis points. The bank was also able to reduce the impact of increasing deposit costs and increased deposit volume by decreasing its high-cost funding. 
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Other income dropped from P3.4 billion in Q1 2023 to P1.2 billion in Q1 2024, mostly due to the bank's significant ROPA sale a year ago.

Operating expenses declined by 8% to P7.3 billion, demonstrating the bank's capacity to reduce costs. 

The provision for impairment losses is P620 million, 62% lower than the previous year, as the bank's loan portfolio has fully recovered from the pandemic's residual impacts and the economy continues to grow at pre-pandemic levels.

Total assets as of March 31, 2024 were P1.196 trillion, 1% lower than the December 31, 2023 level. Net loans and receivables are unchanged at P610.0 billion, with deposit liabilities at P916.4 billion.

“This year is exciting for the Bank as we embark on expanding our reach to the small- and medium-enterprises as well as in consumer lending. We shall strengthen our relationships with our local businesses and retail customers by providing relevant services that will help them fulfill their financial objectives,” said Francis B. Albalate, Executive Vice President and Chief Financial Officer.

Euromoney recognized PNB as the Best Bank for Investment Research in the Philippines at its Private Banking Awards on March 22. This is PNB's fourth consecutive award since 2021, recognizing the breadth, depth, and quality of the bank's investment research, which assists clients in navigating economic and financial market volatility. 

Furthermore, PNB ranked first in the Philippines in Forbes’ list of World’s Best Banks for 2024. The ranking was based on a worldwide survey of more than 49,000 banking customers in 33 countries. The banks were rated in five key areas – trustworthiness, terms and conditions, customer service, digital services, and quality of financial advice. “We are truly grateful for the continued trust and confidence of our customers. This recognition validates that we are on track in pursuing our vision of being among the top banks in terms of customer growth and satisfaction," said PNB President Florido P. Casuela. “We have made it our mission to promote financial prosperity for all Filipinos and their businesses – locally and internationally – and to empower them to help build a competitive, inclusive, and sustainable economy.”

Philippine National Bank is one of the country’s largest private universal banks in terms of assets and deposits. It provides a full range of banking and other financial services to its highly diverse clientele comprised of individual depositors, small and medium enterprises, domestic and international corporations, government institutions, and overseas Filipinos.