Tycoon Lucio Tan-led Philippine National Bank (PNB) saw a 29.7 percent year-on-year drop in first quarter net profit to P1.3 billion due to a large increase in loan loss provisioning in view of the coronavirus (COVID-19) pandemic.
Loan provisions reached P3.4 billion during the quarter compared to the P346 million during the same period last year.
“Mindful of the unprecedented uncertainties surrounding the economic impact of COVID-19, the bank decided to take a proactive approach in its provisioning,” the bank disclosed to the Philippine Stock Exchange on Wednesday.
PNB’s first quarter revenues rose by 33 percent year-on-year to P12.4 billion, citing growth in net interest income as well as non-interest income primarily gains from securities trading.
Net profit before taxes and provisions for impairment improved by 77 percent year on year.
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.