PNB Savings Bank (PNBSB), the consumer arm of Philippine National Bank (PNB), posted higher earnings in the first quarter of 2016.
Ranked no. 3 in the thrift bank industry, the well-capitalized PNBSB reported a net income of P91 million, up 29 percent from the P70 million earned in the previous year.
The strong performance was driven by the sustained growth in PNBSB’s core business as net interest income increased by 46% year-on-year.
The bank’s loan portfolio level registered at P20.24 billion, more than double its P9.99 billion for the same period last year.
PNBSB’s asset quality steadily improved as gross non-performing loans (NPLs) declined further to 2.95 percent from 4.62 percent a year ago.
Total deposits stood at P14.12 billion, up 64% year-on-year from P8.63 billion, which was primarily fuelled by short term and long term deposits that matches the long term assets of the bank.
PNBSB’s total capital base stood at P11.32 billion, up by 2%. The Bank’s capital position remained solid with a Capital Adequacy Ratio (CAR) of 50.02%, well-above the minimum 10% required by the Bangko Sentral ng Pilipinas (BSP).
PNBSB continued to expand its network by opening four branches during the first quarter of the year. As of March 31, 2016, PNBSB had a total of 40 branches strategically located across Metro Manila, Southern & Northern Tagalog Regions, Bicol, Western Visayas and Northern Mindanao.
PNBSB plans to expand its network of branches to 60 in 2016 to cater to more clients nationwide.
During the first quarter, PNBSB rolled out a number of new marketing campaigns that are “first” in the market. The PNB Smart Home Loan offers borrowers with very affordable amortizations and competitive rates.
PNBSB also launched the PNB Smart Auto Loan, a payment scheme which decreases the amortization as the value of the auto depreciates. Over time, the customer gets to maximize the value of his asset vis-à-vis the low corresponding outstanding loan balance.
Moreover, the Bank introduced the PNB Smart Auto Upgrade Loan, a program that allows customers to manage their cash flow and at the same time, invest on a car with a higher model.
PNBSB also partnered with technology firm, Voyager Innovations, Inc. for the automation of the Social Security System (SSS) pension and salary loans.
With a new mobile-based loan facility, PNBSB envisions to broaden its reach and provide customers with more innovative services to address their diverse banking needs.
In July 2016, PNBSB’s parent bank, PNB, is proud to celebrate its 100 years in the Philippine banking industry. – BusinessNewsAsia.com