PNB first-half profit jumped 17% to P14.6B
Philippine National Bank (PNB) posted a 17-percent increase in first-half net income, driven by higher lending activity, stronger fee-based income and improving asset quality despite a volatile market environment.
On Friday, the Lucio Tan-led bank said net income reached P14.6 billion in the first six months of 2026, up from P12.5 billion in the same period last year.
This lifted its return on equity to 12.1 percent from 11.4 percent a year earlier.
Operating revenue increased by P3.3 billion, supported by a 7-percent rise in net interest income. Interest income from loans climbed 12 percent, while the cost of deposits fell 24 percent.
Meanwhile, fee-based income jumped by 17 percent, mainly due to higher bancassurance revenue.
The bank also reported improving asset quality, with its gross nonperforming loan (NPL) ratio declining to 4.2 percent from 5.5 percent a year ago. Lower credit costs, PNB said, reflected the sustained improvement in its loan portfolio.
Total assets rose 4.4 percent year-on-year to P1.35 trillion, while total loans expanded 10 percent to P764 billion from P696 billion as the bank made more efficient use of deposits.
Corporate and commercial loans grew 11 percent, while consumer loans surged 21 percent.
PNB chief financial officer Francis Albalate said around 90 percent of the increase in consumer lending came from secured loans, particularly housing loans.
“We are not seeing any deterioration in the portfolio’s credit quality despite the current market environment,” Albalate said.
PNB president and CEO Edwin Bautista said the bank’s performance reflects the strength of its franchise as it celebrates its 110th anniversary.
“We delivered improved profitability, increased our loans and significantly reduced our NPL ratio—demonstrating the quality of our balance sheet and disciplined execution,” Bautista said.
Meanwhile, the bank’s cost-to-income ratio improved to 48.7 percent from 49.3 percent a year ago.
Its capital remained well above regulatory requirements with a common equity tier 1 ratio of 19.4 percent and a capital adequacy ratio of 20.3 percent as of end-June.
Separately, PNB disclosed that PNB Holdings Corp. has set Sept. 25 as the official date for the listing of its shares on the local bourse by way of introduction.
