Philippine National Bank (PNB) Q3 2024 earnings summary

Executive summary

• Consolidated net income for the nine months ended September 30, 2024 reached P15.1 billion, up 11.6% year-over-year, driven by strong net interest income and lower provisions for credit losses.

• Total assets stood at P1.20 trillion, down 1.1% from December 31, 2023, mainly due to lower cash and cash equivalents.

• Total equity increased by 9.9% to P210.1 billion, primarily from net income and reversal of unrealized losses on financial assets.

Financial highlights

• Net interest income for the nine months rose 10.4% to P36.5 billion, with gross interest income up 14.9% and interest expense up 29.1%.

• Net service fees and commission income declined 16.7% year-over-year to P3.6 billion, but rose 12.1% in the third quarter.

• Other operating income fell 31.2% to P4.1 billion, mainly due to lower gains from asset sales and foreign exchange.

• Operating expenses increased 1.2% to P21.7 billion, with higher compensation and taxes offset by lower depreciation.

• Provisions for impairment and credit losses dropped 27.8% to P3.7 billion, reflecting improved loan portfolio quality.

• Basic earnings per share for the nine months was P9.80, up from P8.86 year-over-year.

Outlook and guidance

• Management expects continued improvement in asset quality and profitability, supported by economic growth and prudent risk management.

• The bank remains focused on growing its core lending and deposit businesses, while managing costs and credit risks.