Philippine National Bank Expects PHP600M Net Pft In '05

The Philippine National Bank said Wednesday it expects net profit to reach PHP600 million in 2005, supported by higher remittance income, a decline in bad loans, and the sale of its nonperforming assets.

PNB, the country's sixth largest bank in terms of assets, recorded a net profit of PHP353 million in 2004.

In the nine months to Sept. 30 of this year, PNB's net profit more than tripled to PHP454 million following a strong rise in interest income.

At the end of September, the bank's nonperforming loans stood at 29.2% of its total loan portfolio, down from 39% at the end of 2004.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.