PNB SEES 51% RISE IN EARNINGS

The Philippine National Bank (PNB) sees earnings of about P3.93. billion, an increase of 51 percent which includes monetization of its real estate properties seen to result in an additional P50 billion to its balance sheet.

Among the valuable assets waiting to be monetized are the 10-hectare existing head office along Macapagal Avenue, the old Allied Bank building on Ayala Avenue and the 8,000-square-meter prime lot foreclosed from musician-businessman Ramon “RJ” Jacinto.

These three big properties have an estimated fair value of about P50 billion, or larger than PNB’s current market capitalization of P35 billion.

Veloso said he was optimistic that the real estate monetization would be consummated this year, boosting momentum to sustain its earnings growth beyond 2021.

The Bank is expecting a reduction in its loan loss provisioning in 2021 as the anticipated re-opening of the economy following the roll-out of the COVID-19 vaccine will allow its customers to resume their operations, recover revenues and generate cash flows to service their financial obligations.

As a result of the reduction in loan loss provisioning compared to 2020, the Bank expects its net income to improve in 2021.

WEEKLY FEATURE : BONNER DYTOC SHOWS THE WAY IN STOCK PLAY