PNB says H1 net income down due to pandemic, continues to boost loan reserves

ABS-CBN News

Posted at Aug 11 2020 10:19 AM | Updated as of Aug 11 2020 11:11 AM

Philippine National Bank (PNB) at the Allied Bank Plaza in Makati, April 26, 2018. Jonathan Cellona, ABS-CBN News

MANILA - Philippine National Bank said Tuesday its net income for the first half of 2020 declined due to the impact of the COVID-19 pandemic and measures imposed to mitigate risks.

Net income for the January to June period reached P1.4 billion, down P4 billion from the same period last year, PNB said in a disclosure to the stock exchange.

The bank booked additional impairment provisions of P5.1 billion in the second quarter, which brought the total provisions to P8.4 billion to date, it said.

Revenues for the first half reached P23.6 billion, up 24 percent from the same comparable period despite the pandemic.

PNB said it sustained its loan growth receivables, now at P602.6 billion, up 1 percent from last year. Deposit liabilities expanded to P790.7 billion as of end-June, up by 2 percent, it said. Trading securities gains also improved for the period.

“PNB’s performance for the first half of 2020 demonstrates the depth and resiliency of its core business as the bank sustained its growth momentum, built on a solid business franchise with continued and strong support from its customers," PNB president and CEO Wick Veloso said.

"As the uncertainties from the pandemic persist, we will continue to take a pragmatic approach on loan provisioning to proactively protect the bank’s balance sheet against potential credit losses”, he added.

Veloso said it would focus on "tactical strategies" to ensure continued service, strong liquidity and capital positions and an active participation in reviving the economy.

As of August, almost all branches are open to serve clients from over half of its branch network opening on rotational basis and shortened banking hours during the enhanced community quarantine.

PNB said it would continue to deploy "bank on wheels" where consumers can withdraw cash, pay bills or transfer funds.