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PNB first half net profit grows 144%

PNB first half net profit grows 144%

(2 October 2012 – Philippines) Philippine National Bank (PNB)’s first half net profit grew by 144 percent to P1.77 billion (A$400,000) compared to the first six months of 2011. Total operating income grew 34 percent to P8.7 billion compared to P6.5 billion of the same period a year ago.

Interest income on loans was up 6 percent owing to improved volume and better spreads coming out of a good mix of corporate, SME and consumer lending.

Net loans and receivables grew by P5.3 billion during the first half of the year to close at P131.5 billion.

Trading and investment securities gains expanded 16 times over year-on-year to close P2.6 billion, attributed largely to the gain on sale and redemption of available for sale securities.

PNB beefed up its inventory of available-for-sale investments by 13 percent from the end of 2011 income from transactional foreign exchange was likewise up 42 percent.

The deliberate move to focus on generating low cost funds resulted in an improvement on average cost of funds, thus shoring up net margins by 3 percent as interest expense went down by 24 percent compared to the same period last year.
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