Philippine National Bank (PNB) Q2 2024 earnings summary

Executive summary

• Consolidated total assets reached P1,256.3 billion as of June 30, 2024, up 3.8% from December 31, 2023, driven by higher cash, investment securities, and loans.

• Net income for the first half of 2024 was P10.3 billion, a 5.6% increase year-over-year, supported by robust net interest income.

• Total equity rose to P202.8 billion, up 6.1% from year-end 2023, mainly due to net income and improved unrealized losses on FVOCI assets.

Financial highlights

• Net interest income for H1 2024 was P24.0 billion, up 11.2% year-over-year; gross interest income rose 16.6% to P33.0 billion.

• Net service fees and commission income declined 27.4% to P2.3 billion for H1 2024.

• Other operating income dropped 48.5% to P2.3 billion due to lower gains from asset sales and foreign exchange.

• Operating expenses decreased 4.1% to P14.3 billion, mainly from lower depreciation and non-recurring prior period expenses.

• Provision for impairment, credit, and other losses increased 32.0% to P2.1 billion.

• Basic and diluted EPS for H1 2024 was P6.70, up from P6.39 in H1 2023.

Outlook and guidance

• Management maintains a conservative provisioning stance due to high interest rate uncertainties.

• No material events or commitments expected to impact liquidity or operations in the next 12 months.