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Saturday, May 17, 2014

PNB's earnings fall by more than half in 1Q

Philippine National Bank's (PNB) profit in the first quarter fell by 54 percent, dragged down by the lower trading and investment gains during the period.

In a report to the Philippine Stock Exchange (PSE), the banking arm of the Lucio Tan Group (LTG) said its net income from January to March this year reached P1.3 billion, P1.5 billion lower than the P2.8 billion posted the same period last year.

Net interest income jumped 138 percent to P4.5 billion from P2.6 billion the year before while net service fees and commission income was flat at P600 million.

Trading and investment income dropped 88 percent to P237 million from P3.2 billion in the first quarter of 2013, causing the total operating income to decrease by 13 percent to P6.6 billion from P7.6 billion previously.

Financial markets during the quarter were volatile, owing to the flight of foreign capital as the US Federal Reserve's withdrawal of economic stimulus.

Expenses went up by 17 percent to P4.8 billion from 4.1 billion last year as compensation and fringe benefits, occupancy and equipment-related costs incrased.

The bank'ss assets at end-March dipped to P611.9 billion from P6.2 billion while return on equity dropped to 6.3 percent from 18.4 percent due to the lower net income of the merged PNB-Allied Banking Corp.

Non-performing loans (NPL) slid lower to P10.3 billion at end-March 2014 from 10.7 billion in December 2013 while its NPL ratio was 1.3 percent.

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