PHILIPPINE National Bank (PNB) reported a double-digit drop in net income in the first six months of the year due to the absence of one-off gains that boosted earnings a year earlier.
Net income reached P2.66 billion in the first half of 2017, down 38 percent from P4.32 billion a year earlier, the bank said in a disclosure to the Philippine Stock Exchange on Friday.
It said last year’s comparable net income included one-time gains amounting to P2.7 billion.
In the second quarter alone, net income was down 15 percent at P1.44 billion from P1.71 billion previously.
The bank said non-interest income reached P3.4 billion, while net service fees and commission income grew by 12 percent as the bank intensified its cross-selling efforts to its customers.
Treasury-related income decreased substantially due to muted trading opportunities. Operating expenses, excluding provision for impairment and credit losses, expanded by 6 percent over the same period last year due to prudent spending despite aggressive business growth, it noted.
Net interest income increased 8 percent year-on-year, driven by 13 percent growth in interest income earned from loans and receivables on the back of a 16 percent expansion in loan portfolio, boosted by increases in loans to corporate, commercial and small and medium-sized enterprises.
During the first half of the year, PNB said it also accessed the Bangko Sentral ng Pilipinas’ term deposit facility, which offered better yields that led to a substantial hike in interest income earned from placements with banks and others, thus more than offsetting the lower interest income contribution from trading and investment securities.