Philippine National Bank (PNB) booked a higher net income of P6.37 billion in the first quarter, up by five percent from a year ago, as stronger lending activity and higher core revenues offset a still uncertain interest-rate environment.
In a disclosure, the Lucio Tan-led bank said earnings for the January to March period were driven by steady growth in net interest and fee income, disciplined balance sheet management and prudent cost controls.
Net interest income rose by six percent year-on-year, while net fee income also increased by six percent.
PNB president and CEO Edwin Bautista said the lender remained focused on growth initiatives despite external headwinds.
‘Despite global economic headwinds, we delivered solid first-quarter progress on the back of a strong balance sheet and growing core income,’ Bautista said.
‘We are building momentum with focused growth, tighter cost control and improving asset quality while continuing to push forward our digital and AI initiatives, regardless of the market cycle,’ he said.
The bank’s total loan portfolio expanded by 15 percent from a year earlier, outpacing profit growth as PNB continued to deploy capital into lending.
Deposits stood at P1.01 trillion, with low-cost current and savings accounts making up 80 percent of the total deposit base.
‘Our return on assets remained solid at 1.91 percent in the first quarter, reflecting efficient asset deployment and the benefits of a balanced loan mix that continues to support consistent earnings despite an uncertain rate environment,’ PNB chief financial officer Francis Albalate said.
Return on equity stood at 10.8 percent, while the non-performing loan ratio was at 4.78 percent, indicating stable asset quality.
Apart from its earnings report, PNB also disclosed that its board approved the creation of an Artificial Intelligence Strategy and Governance Committee during its April 24 meeting, signaling a deeper push into technology and digital transformation.
The board likewise approved a series of management promotions effective May 1, including the elevation of Carlo Dimaala to executive vice president, Jennifer Ng and Maria Teresa Velasco to first senior vice president as well as four officers to senior vice president rank.
PNB also said Moody’s Ratings recently affirmed the bank’s investment-grade credit rating with a stable outlook, citing what the lender described as the strongest capital position among its peers.