INTRODUCTION

Background of the Study

In our own different lives, we have our own needs and one of this is money.

Money is not just a need but it is a necessity. It is very important to us that’s why we

want to save and keep it. People tend to use a bank to entrust their money there.

According to Lee Ann Obringer (2019), a bank is an institution that deals in money and

its substitutes and provides other financial services. Banks accept deposits and make

loans and derive a profit from the difference in the interest rates paid and charged,

respectively. And because of this the researchers were inspired to conduct a study

about the services and products a certain bank offers. The researchers chose the

Philippine National Bank.

The Philippine National Bank (PNB) is one of the largest banks in the Philippines.

It was established by the Philippine government on July 22, 1916, during the American

Occupation. The Philippine National Bank offers a wide selection of Unit Investment

Trust Funds (UITFs) suited for the clients’ financial goals. UITFs are investment

products that allow the pooling of funds from various investors with similar objectives.

These funds are managed by professional and experienced fund managers and are

invested in various financial instruments such as government securities, bonds,

commercial papers, and deposit products. Among PNB’s UITFs are the Institutional

Money Market Fund and the Enhanced Phil-Index Reference Fund.

The researchers provided the services and products that the bank offers so that

the researchers can encourage people to bank with PNB.

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Objectives of the Study

The researches will aim to achieve the following objectives;

1. Research and study about the Philippine National bank and;

2. Provide and give examples about the services and products the bank

offers that is related to business math like;

2.1 Simple and Compound Interests

2.2 Simple and Compound Annuities

2.3 Bonds and Stocks

2.4 Business and Consumer Loans

Significance of the Study

This research study is significant and important to the following;

People: This study will give more knowledge to people about the services and

products the Philippine National Bank offers and teach people the essence of banking.

Economy: The economy will boost because of the people that will incorporate

with the Philippines National Bank.

Scope and Limitation of the Study

This study only focuses and limits in providing knowledge to people about the

services and products the Philippine National Bank offers.

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Review of Related Literature

A bank is a financial institution licensed to receive deposits and make loans.

Banks may also provide financial services, such as wealth management, currency

exchange, and safe deposit boxes. There are two types of banks: commercial/retail

banks and investment banks. In most countries, banks are regulated by the national

government or central bank. Commercial banks are typically concerned with managing

withdrawals and receiving deposits as well as supplying short-term loans to individuals

and small businesses. Consumers primarily use these banks for basic checking and

savings accounts, certificates of deposit (CDs), and home mortgages. Examples of

commercial banks include JPMorgan Chase & Co. and Bank of America Corp.

Investment banks focus on providing corporate clients with services such as

underwriting and assisting with merger and acquisition (M&A) activity. Morgan Stanley

and Goldman Sachs Group Inc. are examples of U.S. investment banks. Central banks

are chiefly responsible for currency stability, controlling inflation and monetary policy,

and overseeing money supply. Some of the world's major central banks include the U.S.

Federal Reserve Bank, the European Central Bank, the Bank of England, the Bank of

Japan, the Swiss National Bank and the People’s Bank of China. While many banks are

able to offer both a brick-and-mortar location and an online presence, a new breed of

bank that only maintains an online presence started emerging in the early 2010s.

Online-only banks often offer consumers higher interest rates and lower fees.

Convenience, interest rates, and fees are the driving factors in consumers' decisions of

which bank to do business with. As an alternative to banks, consumers can opt to use

a credit union (Adam Barone, 2019).

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 Philippine National Bank (PSE: PNB) is one of the country’s leading private

universal banks in terms of assets. In July 2016, PNB celebrated its centennial year with

the theme, “A Century of Excellence”, signifying a meaningful milestone for an

organization that has served generations of Filipinos. PNB stands proud as an

institution that offers stability and security for many Filipinos. PNB’s principal

commercial banking activities include deposit-taking, lending, bills discounting, trade

finance, foreign exchange dealings, fund transfers, remittance servicing, asset

management, a full range of retail banking and trust services, and treasury operations.

Through its subsidiaries and affiliate, the Bank also engages in thrift banking; full

banking services in China and the United Kingdom; banking services in Hong Kong; and

a number of diversified financial and related businesses such as remittance servicing in

the United States, Canada, and Hong Kong; investment banking; life and non-life

insurance; stock brokerage; and leasing and finance services. For the first half of 2019,

PNB reported a 24% growth in its total consolidated assets which stood at Php1.09

trillion, up by Php211 billion compared to levels a year ago. Net income for the first

semester of 2019 reached Php3.9 billion. To date, the Bank has a total domestic

footprint of 712 branches and more than 1,500 ATMs strategically located nationwide.

PNB maintains its position as the Philippine bank with the most extensive international

reach with more than 70 overseas branches, representative offices, remittance centers

and subsidiaries across Asia, Europe, the Middle East, and North America.

Backed by a legacy of service excellence, PNB is poised to move forward to become a

more dynamic, innovative, and customer-focused bank – a dependable financial partner

of Filipinos all over the world (PNB,2019).

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 METHODOLOGY

Philippine National Bank services and products;

1.) PESO and USD Time Deposit

PNB Singapore offers Peso and US dollars-based time deposits, which are maintained

and can be withdrawn here. The initial deposit is PHP10,000 and USD1,000

respectively. All you need are photocopies of your passport and work permit, S pass, E

pass, or NRIC. Minimum placement is one month and maximum is one year.

FIXED TERM DEPOSITS � US DOLLAR

PRINCIPAL 30 Days 60 Days 90 Days 180 Days 360 Days
USD 1,000-4,999 0.1250 0.1875 0.2500 0.3750 0.6250
USD 5,000-9,999 0.1250 0.1875 0.2500 0.3750 0.6250
USD 10,000-49,999 0.3750 0.3750 0.5000 0.6250 0.7500
USD 50,000-99,999 0.5000 0.5000 0.6250 0.7500 0.8750
USD100,000-499,999 0.6250 0.6250 0.7500 0.8750 1.0000
USD500,000 & above 0.6250 0.6250 0.7500 0.8750 1.0000
FIXED TERM DEPOSITS - PESO
PRINCIPAL 30-90 Days 90-180 Days 181-360 Days
PhP 10,000-49,999 0.2000 0.2000 0.2000
PhP 50,000-249,999 0.4000 0.4000 0.4000
PhP 250,000-499,999 0.4000 0.5000 0.5000
PhP 500,000-999,999 0.5000 0.6000 0.6000
PhP 1,000,000-4,999,999 0.6000 0.7000 0.7000
PhP 5,000,000 & above 0.7000 0.8000 0.9000

2.) SSS payments

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  PNB Singapore is an accredited collection of agent of SSS in the

Philippines

 Special remittance fee of SDG0.99 only

 Your SSS payments and monthly contributions will be credited directly to

SSS thru PNB Diliman Branch

3.) PAG-IBIG payments

 PNB Singapore is an accredited collection agent of PAG-IBIG in the

Philippines

 Special remittance free of SGD0.99 only

 Your PAG-IBIG payments and monthly contributions will be credited

directly to PAG-IBIG thru PNB Petron Megaplaza, Philippines

4.) Import-Export Products

Secure a letter of credit issued by PNB Singapore. The buyer will prepare

a payment instruction authorizing the seller to withdraw from the buyer’s

account in payment for good subjects to presentation of stipulated

documents to the negotiating/paying bank.

 Import LC (letter of credit) opening, negotiation and payments

 Export LC (letter of credit) advising, confirmation, reimbursements

 Insurance of Bank Guaranty

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 Documentary Documentary
Amount Amount
Credits (Exports) Credits (Exports)
Advising of credits 1/8% per month or
without engagement SGD 50.00 fraction thereof; min. ¼%
on our part for first two (2) months or
SGD 70.00 whichever is
Advising of higher. Additional 1/8%
SGD 25.00 Opening of L/C
amendments per month comm. if
1/8% per month or issuance drawings
fraction thereof; permitted under L/C from
Confirmation of min. ¼% for the first L/C expiry date to
credits two (2) months or SGD maturity date of draft
50.00 whichever is Amendment of
higher L/Cs
Negotiation of drafts  Extension of
under L/Cs 1/8% per month but not
Expiry Date
less than SGD 50.00
 In Singapore
Dollars 1/8%; min. SGD 50.00 1/8% per month; min ¼
 Increase in
% on increased amount
L/C Amount
 In Foreign 1/8% min. SGD 50.00 but not less than SGD
Currency ¼% comm. in lieu of 50.00
exchange  Others
SGD 30.00 flat
1/8% per month;
Export LC Transfer
minimum SGD 100.00 Payment of
1/8% per month or part Documents under
Acceptance of L/C
thereof; min. SGD
Issuance Draft
50.00 1/8%; min. SGD 50.00
 In Singapore
Reimbursement under comm plus SGD 30.00
1/8%; min. SGD 50.00 Dollars
L/Cs handling charges per
drawing
1/8% min. SGD 50.00
 In Foreign
comm plus SGD 30.00
Currency
handling charges per
drawing
Cancellation of 1/8% per month; min
SGD 50.00
unutilized L/C Acceptance under SGD 50.00 shall be
issuance L/C charges for the issuance
period of the draft
Cancellation of L/C SGD 50.00 flat

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 RESULTS AND DISCUSSION

Sample problems involving simple and compound interests associated with the

Philippine National Bank;

1.) The Philippine National Bank offers a 6.25% annual interest rate for a

particular loan. How much interest will be earned if 100,000 pesos is

deposited in this savings account for 3 years?

Given: P = 100,000 r = 6.25% = 0.0625 t = 3 years

Find: Is

Solution : IS = Prt

IS = (100,000)(0.0625)(3)

IS = 18,750

Answer: The interest earned is 18,750.

2.) What is the Interest of 75,000 pesos if invested at 7.10% compounded

annually in 2 years and 3 months?

Given: P = 75,000 r = 7.10% = 0.071 t = 2 ( 3/12)

Find: Ic

Solution: F = P(1+r)t Ic = F - P

F = (75,000)(1+0.071) 2 (3/12) Ic = 77,616.8474 – 75,000

F = 77,616.8474 I c = 2616.8474

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Sample problems involving simple and compound annuities associated with the

Philippine National Bank;

1.) Vivien started to deposited 20,000 pesos semi-annually in the Philippine

National bank that pays 6.85% compounded quarterly. How much will be

in her savings after 4 years?

0.0685
Given: R = 20,000, m = 4, i(12) = 6.85% = 0.0685, j= =0.0057083,
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t = 4, n =tm=(4)4)=16

Find: F

(1+ j)n−1 ❑ (1+0 . 0057083)16−1 ❑

Solution : F=R F = 20,000 F = 334,0071.7328
j 0. 0 057083

2.) The Philippine National Bank pays interest at the rate of 3% compounded

semi-annually. How much will Gretch have in the bank at the end of 2

years if she deposits 1,000pesos every month?

Given: R = 1,000 n = mt = (12)(2) = 24 payments i (2)=0.03

Solution : Convert 3% compounded semi-annually to its equivalent interest rate for

monthly payment interval.

i 12 (12) i2 i 12
( 1+ ) = ( 1+ ) (2) = ( 1.015 ) 1/6 – 1, j = 0.002484
12 2 12

i 12 12 0.03 2
( 1+ ) = ( 1+ ) Find the Future value of an ordinary annuity
12 2

i 12 (12)
( 1+ ) = ( 1.015 ) 2 using the computed equivalent rate.
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i 12 (1+ j)n−1 (1+0.002484)24 −1

1+ = { ( 1.015) 2 } 1/12 F=R F = 1,000
12 j 0.002484

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 i 12
1+ = ( 1.015 ) 1/6 Answer: F = 24,698. 23709
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Sample problems involving business and consumer loans associated with the

Philippine National Bank;

1.) If a house is sold for ₱2,500,00 and the Philippine National Bank requires

a 10.75% down payment, find the amount of the mortgage.

Solution:

Down payment = down payment rate x cash price

= (0.1075) (2,500,000)

= 268,750

Amount of the Loan = cash price – down payment

= 2,500,000 – 268,750

= ₱2,231,250

The mortgage amount is ₱2,231,250.

Sample problems involving Bonds and Stocks associated with the Philippine National

Bank;

1.) The Philippine National Bank declared a dividend of ₱31 per share for the

common stock. If the common stock closes at ₱95, how large is the stock

yield ratio on this investment?

Solution:

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 dividend
Given: Dividend per share = ₱31 Stock yield ratio =
market value

Market value = ₱95 Stock yield ratio = 31/95 = 0.33

Find: stock yield ratio Therefore, the stock yield ratio is 0.33

CONCLUSION

Therefore the services and products that the PHILIPPINE NATIONAL BANK

offers is really nice and beneficial. PNB provides a range of banking and financial

services to corporate, middle-market, small and medium enterprises and retail

customers, including overseas Filipino workers, as well as to the Philippine national

government, national government agencies, local government units and government-

owned and –controlled corporations in the Philippines. As well as giving the Filipinos the

greatest service PNB can provide. Not only here in our country Philippines but even to

other countries in the world. That’s why people should bank and entrust their savings

and money with the PHILIPPINE NATIONAL BANK.

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 Bibliography

Lee Ann Obringer, (2019). How Banks Work. Retrieved from:

https://money.howstuffworks.com/personal-finance/banking/bank1.htm

Adam Barone, (2019). Bank. Retrieved from:

https://www.investopedia.com/terms/b/bank.asp

PNB, (2019). Corporate profile. Retrieved from:

https://www.pnb.com.ph/index.php/corporate-profile

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