MANILA - Philippine National Bank on Monday said its net income grew 71 percent to P4.8 billion in the first quarter of the year.

PNB said this was driven by increases in interest margins, fee-based income and gains on the disposal of the Bank’s foreclosed properties.

“Income from core businesses continued to show progress as the Bank’s net interest income rose by 23 percent year-on-year to reach P10.5 billion due to improvement in loan-to-deposit ratio to 70 percent from 65 percent a year ago, as well as higher yield rates on earning assets amid the rising interest rate environment,” PNB said.

The bank said its net interest margin hit 4.22 percent in the first quarter of 2023 against 3.39 percent a year ago while fee-based revenues grew 24 percent to P1.6 billion on the back of increases in volume of credit and deposit-related transactions.

“We remain focused on improving efficiencies and in supporting our customers, their businesses and our stakeholders capture opportunities presented by the thriving economy,” said PNB President Florido Casuela said.

The banking arm of tycoon Lucio Tan said it continued to dispose of foreclosed properties during the period and its conservative approach in its provisioning due to uncertainties brought about by the rising interest rates.

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