Philippine National Bank’s (PNB) net income increased by 15 percent to P6.1 billion in the first quarter compared to the same period last year due to better loan quality and the sale of foreclosed properties.

In a disclosure to the Philippine Stock Exchange on Monday, PNB said provision for impairment losses shrunk by 55 percent to P277 million as the bank registered low-risk loans.

PNB said net loans and receivables reached P655.9 billion. Given its other major businesses, core income jumped by 10 percent to P14.1 billion.

“The first quarter financial results this year reflect the strength of PNB’s franchise in its wholesale and retail businesses,” PNB president Florido Casuela said

Non-interest income from trading, foreign exchange, and foreclosed properties also rose to P1.9 billion from P1.2 billion.

However, operating costs rose 10 percent to P8.1 billion as the bank invested in and deployed resources to reach more individual clients.

Total assets slightly grew by 2 percent to P1.28 trillion as deposit liabilities settled at P988.3 billion.