PHILIPPINE National Bank (PNB) closed 2010 with a 61% increase in net
income from the previous year as a result of high returns from trading.
PHILIPPINE NATIONAL BANK said its efforts to improve customer service
helped in boosting profits. The bank disclosed yesterday that its net
income rose to P3.54 billion last year, a 61% jump from the P2.2-billion
net income it reported for 2009.
In a disclosure to the Philippine Stock Exchange, the bank said its
profit amounted to P3.54 billion last year, higher than the P2.2-billion
net income it posted in 2009.
PNB's net gains from trading and investment securities amounted to P3.03
billion as of the end of 2010, more than double the P1.4 billion it
recorded the previous year.
The bank's trading assets likewise jumped by 86% last year from that of
the previous year.
The bank's total deposits increased by 6% to P226.44 billion from P215
billion a year ago as it maintained a large volume of low-cost -- or low
interest-paying -- deposits. Its net loans and receivables rose by 10%.
"Net interest margins remained fairly at the same levels at P7.8 billion
as the increase in earning assets compensated for the reduction in
spreads [generated] by the market's liquidity in 2010," the bank said.
The bank said its P3.54 billion net income translated into an 11% return
on equity, which is net income earned as percent of stockholders'
investments and a key measure of performance.
Its capital adequacy ratio (CAR) -- a measure of a bank's financial
strength -- stood at 19.41%, well above the central bank's 10% minimum
requirement and higher than the 18.5% it posted a year ago.
PNB managed to bring down its non-performing loan (NPL) ratio, or the
ratio of soured loans to total loans, to 4.1% last year from 5.6% in 2009.
As of end-2010, the bank's consolidated assets rose by 7% which is
equivalent to P302.13 billion.
Total operating income increased by 9% to P16.58 billion from that of
the previous year, while its operating expenses, including its
provisions for impairment and credit losses inched up by 0.8%.
"Moving forward, [PNB] is now well positioned to grab market share in
the consumer loans business...as it made a lot of progress in improving
customer service across the organization," the bank said in the disclosure.
"PNB declared 'war' against long customer lines. Through technology
solutions, operational process adjustments, and a relentless campaign to
drive a customer-centered sales and service culture, customer waiting
time in the branches was cut significantly," it added.
"The good numbers may mask the significant effort exerted to put the
derailed bank back on track. We still have a huge load from negative
carry on our acquired assets, but are winning the war against
inefficiency. We can now approve car loans in as fast as a couple of
hours," PNB President Eugene S. Acevedo told BusinessWorld in a text
message yesterday.
PNB shares shed P1.20 to close at P59.90 apiece yesterday against its
P61.10 apiece close last Monday. -- Ann Rozainne R. Gregorio
