Update on PNB Net Income amid the COVID-19 Crisis in PH
PNB NET INCOME – The net income of the Philippine National Bank (PNB) increased amid the COVID-19 crisis in the Philippines.
A lot of businesses in the Philippines were dragged down by the COVID-19 pandemic. The week-long if not month-long halting of the operations resulted to their closure. The restrictions have greatly affected the operations but these are needed in the fight against the pandemic.
While some businesses closed, others continued to make profits. Among those that reported an increase in their earnings are banks which are among those that continue operation even amid strict measures as they are essential businesses.
Recently, the Philippine National Bank or more commonly called as PNB reported its earnings to the Philippine Stock Exchange. In the first quarter of 2021, the PNB net income increased by 34% or P1.8 billion.
According to the Lucio Tan-led bank, the increase in the PNB net income is a product of the improvement in the service fees, the lowered operating expenses, the improvement in the commission income, and the lower provisions for credit losses.
The net service fees and commissions increased by 35% due to higher fees on certain services involving credit cards and bancassurance services. PNB‘s operating expenses was also reduced by 8% following the bank maintaining the rationalization on expenses considered as non-essentials.
While banks may be reporting a boost in their incomes even amid the COVID-19 pandemic, airlines are visibly suffering from the impacts of the present situation. The closure of borders between countries and even inside PH happen from time to time thus flights are halted in case in takes place.
Also, non-essential travel is discouraged amid the COVID-19 pandemic now. Airlines are already seeking for loan guarantee from the government so they can borrow funds from private banks.
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