Loans boost PNB Savings’ earnings

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PNB Savings Bank (PNBSB), the thrift bank arm of the Philippine National Bank (PNB), posted a 51.8 percent increase in net income last year driven by robust growth in its consumer loans.

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In a disclosure to the Philippine Stock Exchange (PSE), the thrift bank said it posted net income of P167 million in 2015, up from P110 billion in 2014.

PNB Savings said it further entrenched itself as a major market player in consumer loans as its housing loans accounted for 66 percent of new consumer business, auto loans generated 33 percent while multi-purpose and salary loans contributed 1 percent.

Of the new housing loans, more than half was accounted for by referrals from the bank’s partner developers and dealers while 39 percent was referred by the branch network.

“PNB and PNBSB branches remain to be a steady source of consumer loan referrals. This channel also makes housing and auto loans easily available to customers even in far-flung areas,” it stated.

In 2015, the thrift bank forged 27 partnerships with real estate organizations, bringing the bank’s total developer network to 138 and further augmenting the bank’s presence in the real estate industry.

PNB Savings closed 2015 with total resources of P22.7 billion, up 8 percent from the previous year.

Total deposits stood at P 11.1 billion, up 15 percent from a year earlier, while total loan portfolio rose to P19.1 billion by the end of 2015, more than double the P9.0 billion recorded in 2014.

Consumer loans comprised 93 percent of the total loan portfolio.

Net interest income rose 54 percent from the previous year to P1.0 billion while pre-tax profit improved by 43 percent to P253.2 million.

Return on equity stood at 1.5 percent lower than previous year due to a capital infusion of P10 billion.

PNB Savings Bank’s capital adequacy ratio (CAR) stood at 56 percent, well above the minimum required by the BSP.

PNB Savings ended the year with a network of 36 branches strategically located across
Metro Manila, Southern and Northern Tagalog Regions, Bicol, Western Visayas and Northern Mindanao.

It said it is planning to expand its branch network to 60 this year to cater to more clients nationwide.

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