Latest posts by Stock Signals Philippines (see all)
- Philippine Seven Corporation (SEVN) – Analysis – November 23, 2017 - November 24, 2017
- Philippine Stock Exchange – Market Wrap-Up Report – 23 November 2017 - November 23, 2017
- Top Gainer and Top Loser Analysis – Philippine Stock Exchange – 23 November 2017 - November 23, 2017
MANILA, Philippines – The Philippine National Bank (PSE:PNB) books a 21 percent higher net income of P5.7 billion compared to last year record of P4.7 billion.
The net interest income of the financial firm increased to P14.5 billion, a climb by 13 percent. Two-thirds of overall operating income comes from net interest income.
The core businesses of PNB continue to grow. In spite of the bank’s earning assets decline, there is a solid 3.1 percent for its net interest margin, which was bore on by 12 percent low cost deposits growth. Low cost deposits attribute for the over 50 percent of total deposits. The ratio of loans-to-deposits remained at 70 percent, which shows the financial firm’s concentration on effective funds allocation for a stabilized income flow.
The double-digit growth of its non-interest income also contributes to the firm’s robust nine-month performance. There is an 84 percent gain registration in trading and foreign exchange, which yielded from unwavering market environment.
Sale of foreclosed assets also had a significant net income growth. This streamlines the endeavors of the company to reduce non-earning items.
The financial firm’s revenues continued to boost with the help of higher miscellaneous returns, which primarily include non-performing loans collection. Moreover, the bank’s mixed profit is inclusive of the erstwhile yield from the tender of its 51 percent stake in life insurance subsidiary.
The consolidated assets of the company totaled to P718.4 billion as of September 2016, which is an increase by six percent or P38.7 billion from a year ago at P64.9 billion.
Non-performing loan (NPL) measures dropped by 0.1 percent on valuation reserves net from 0.25 percent last year. Gross NPL measure declined to 2.32 percent from 2.61 percent prior this year. This occurred while asset quality improved progressively.
At present, NPL coverage stands at 137.8 percent. The consolidated capital position of the firm also remained robust. Its Common Equity Tier (CET) 1 ratio is now 16.7 percent and Capital Adequacy Ratio (CAR) stood at 17.6 percent. The ratios have exceeded the minimum ordinance requirements.
Apart from the country’s stabilized growth, PNB would also be able to capitalize on other opportunities with a strong assets base.