Philippine National Bank
PNB targets millennials as it ramps up digital banking efforts

Posted on January 16, 2017

PHILIPPINE National Bank (PNB) is focusing on ramping up its digital banking efforts this year as it eyes to offer its services to more customers entering the labor force, a top official said.
PNB Senior Vice-President and Chief Marketing Officer Norman Martin C. Reyes said the bank is currently prioritizing its digitization efforts for 2017, further tapping its clients who are in the “millennial” market class.

“We’re putting a lot of emphasis on digital banking because we know already that millennials would rather use their phones to do their banking rather than go to a branch,” Mr. Reyes said in an interview, noting that PNB wants “to make it easy for millennials” to transact with the bank.

At end-June 2016, PNB had 670 branches and 960 automated teller machines nationwide and 70 overseas branches and offices.

Asked what age group the bank is eyeing to tap, Mr. Reyes said PNB is targeting customers who are “just coming into the work force... but they’re starting a new family.”

“So those coming in and starting a new family are what we’re targeting because we know that we want to grow with them and we know that they eventually would want to have a car loan, a housing loan,” he explained.

PNB saw its bottom line climb 21% in the nine months ended September 2016 to P5.7 billion from the P4.7 billion recorded in the same period the previous year, driven by a double-digit growth in its non-interest income.

PNB’s asset quality in the nine months ended September also improved as its non-performing loan (NPL) ratio dropped to 0.10% from 0.25% recorded in end-2015, with the bank’s NPL coverage at 137.8%.

Aligned with the bank’s digital shift, Mr. Reyes said PNB will officially launch its mobile banking application by mid-January. PNB’s mobile application already had its soft launch late last year. Currently it only offers basic banking services such as deposits, fund transfers and bills payment. Mr. Reyes said the bank will add card services to its mobile banking application soon.

Mr. Reyes added that following its initial launch, PNB’s mobile banking application saw a lot of uptake. He also noted that most of the bank’s customers aged 35-45 years old use the mobile application. “We’re targeting people who are on-the-go, businessmen [and] entrepreneurs,” he said.

The bank is looking to have 25% of its mobile banking application usage comprised by millennials this year.

Shares in PNB gained 10 centavos or 18% to end at P54.80 apiece on Friday. -- J.M.D. Soliman
[Image: pnb.png?w=736]
...earnings report....buti pa si sister company MAC maganda kita

PNB profit down 21%

The absence of one-time gains slashed the earnings of listed Philippine National Bank (PNB) by 21 percent in the first nine months.

In a report to the Philippine Stock Exchange (PSE), PNB said its net income amounted to P4.5 billion from January to September, P1.2 billion lower than the P5.7 billion recorded in the same period last year.

The bank said last year’s earnings included one-time gains amounting to P2.7 billion from the disposal of foreclosed assets, collection of non-performing assets, and the sale of its 51 percent stake in PNB Life Insurance Inc. to Allianz SE in June last year.

The country’s sixth largest bank owned by tobacco and airline magnate Lucio Tan registered a 10 percent increase in net interest income in the first nine months as its loan book rose 11 percent amid higher lending to corporate, commercial as well as small and medium enterprises.

Non-interest income reached P5.5 billion for the first nine months, lower than the year-ago mainly due to the one-off revenue earned in the first half of last year consisting of net gains from major disposals of foreclosed assets, net gain on the sale of shares of stock of a subsidiary, and collection of non-performing assets.

The 37 percent jump in the bank’s third quarter income failed to lift its profit in the first nine months. During the quarter, PNB’s net interest income increased 15 percent.

Meanwhile, treasury-related income declined due to muted trading opportunities as investors continue to stay on the sidelines amid further global monetary tightening, geopolitical uncertainties, and interest rate development in the international markets.

On the other hand, operating expenses, excluding provision for impairment and credit losses, were kept to a minimal increase of three percent due to prudent spending despite aggressive business growth.



PNB expects 13-14% growth in net income in 2018

Tycoon Lucio Tan-led Philippine National Bank expects to sustain a 13-14-percent growth in net profit this year, mostly driven by core lending activities and fee-based earnings.

The bank’s thrift bank arm PNB Savings, for its part, has set a full-year net profit guidance of P800 million, around 74 percent higher than the level in the same period last year.

On a consolidated basis, PNB executive vice president and chief financial officer Nelson Reyes said the bank’s net profit would likely grow at a similar midteen pace this year, mostly due to the expansion in core lending activities as treasury income dwindles.

“We expect our net income to grow at a similar pace, midteens level, but this time, the major driver for that will be the increase in core income,” Reyes said.

“The sources of volatile income have been reducing, one of which is trading income. In the past years, we’ve had some one-offs like gains from sale of foreclosed assets, gains from the sale of shares in subsidiaries. These are obviously events that we can’t repeat every year so the major strategic focus of the bank in the last few years is really to grow our core income—lending, deposits and fees,” he said.

Last year, PNB grew its net profit by 14 percent to P8.2 billion. A similar growth pace this year could boost this year’s bottom line to P9.35 billion.

In the last four years, PNB saw a compounded annual growth rate of 28 percent in its risk assets, thereby increasing the share of core income. Reyes added that the bank’s focus would shift from large corporations to commercial/small and medium enterprise (SME) and consumer sectors where margins are higher.


8-6! laki ah

PNB’s profit doubled to P5.4-billion in 6 months

Philippine National Bank, the fifth-largest lender and controlled by airline and tobacco tycoon Lucio Tan, said consolidated net income in the first half of the year doubled to P5.4 billion from P2.7 billion a year ago on the strength of core businesses.

The bank said in a statement the 50-percent growth in total operating income provided the momentum for the strong performance, as core income combined with higher non-recurring revenues significantly increased. 

Comprising almost two-thirds of the total operating income, the bank’s net interest income jumped 27 percent to P13.1 billion from the year-ago level of P10.3 billion, driven by higher loan volumes and improving net interest margins. 

Net service fees and commission income reached P1.68 billion, up to P61 million from the year-ago level, boosted by improvements in credit, deposit, and bancassurance fees, which offset the lower underwriting and investment banking revenues. 


Nakaabang ako sa 50.30

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