The P33.4 billion properties-for-share-swap transaction involving key real estate assets boosted the bottomline of Philippine National Bank (PNB) headed by Wick Veloso.
The Lucio Tan-led bank reported a net income of P31.7 billion for 2021, 12 times higher than the P2.6 billion in profits booked in 2020.
Veloso said PNB remains profitable and was able to provide non-stop banking services to customers and the general public even at the height of the global health crisis.
“We continued to play our part in helping customers and employees by
building safer banking processes and services amidst the continuing pandemic situation,” Veloso said.
The one-off gain represented the fair market value of the 10-hectare PNB Financial Center along Macapagal Boulevard in Pasay City, the PNB Makati Center in the Ayala central business district, as well as the foreclosed eight-hectare property at the corner of Gil Puyat Avenue and Paseo de Roxas in Makati City and were transferred to wholly owned PNB Holdings Corp.
PNB also booked a gain on sales amounting to P767 million after it sold certain bad assets with gross carrying amounts prior to sale of P5.5 billion as part of its continuing strategy to trim the lender’s non-performing loans (NPLs).
PNB’s loan portfolio inched up by one percent to P607 billion, while its deposit base slightly increased to P894.9 billion.
PNB’s operating expenses, excluding provisions, slipped by six percent compared to the previous year as it focused on more essential expenditures while slashing provisions for soured loans by 24 percent.