MANILA — Philippine National Bank (PNB) announced a 15 percent growth in its net income, reaching ₱21.3 billion during the first nine months of 2026, driven by robust loan expansion, steady low-cost deposits, and higher fee-based revenues.
In a disclosure released on Friday, October 23, the publicly listed lender stated that its earnings climbed from ₱18.5 billion recorded during the same period last year.
Financial profitability metrics also saw improvements, with the return on equity (ROE) ticking up to 11.6 percent from 11 percent, and the return on assets (ROA) rising to 2.1 percent from 2 percent.
The bank’s gross loans expanded by 13 percent year-on-year, totaling ₱793 billion as of the end of September. This growth was largely anchored by a 15 percent increase in corporate and commercial loans, which reached ₱726 billion. Meanwhile, consumer loans grew by 11 percent to ₱66 billion, with mortgage loans driving over 80 percent of the portfolio’s expansion.
Total deposits posted a 9 percent year-on-year increase, while the bank maintained a healthy current account and savings account (CASA) ratio of 78 percent. PNB credited its low-cost funding base and disciplined loan pricing for sustaining a net interest margin (NIM) of 4.6 percent.
Asset quality likewise strengthened, as the gross non-performing loan (NPL) ratio improved to 4 percent from 5.2 percent previously. The bank attributed this progress to active collection efforts, NPL account resolutions, and the enhanced credit quality of newer loans.
Non-interest income also bolstered earnings, supported by bancassurance operations—where Allianz-PNB Life secured the top ranking in the 2026 new business bancassurance sector—and Philippine Airlines (PAL) Mabuhay credit card fees.
“Our nine-month performance and improving asset quality reflect disciplined execution, while our artificial intelligence (AI) initiatives are beginning to deliver benefits. With a Common Equity Tier 1 (CET1) ratio of 19.3% and a capital adequacy ratio (CAR) of 20%, PNB remains well-capitalized to support long-term growth,” PNB President and Chief Executive Officer (CEO) Edwin Bautista said.
PNB confirmed that both capital ratios remain comfortably above regulatory minimums.
Additionally, PNB Chief Financial Officer (CFO) Francis Albalate highlighted the successful introduction listing of PNB Holdings Corporation (PHC), the bank’s real estate subsidiary, designed to unlock asset value and strengthen capital positions.
“The successful listing of PHC will allow the bank an opportunity to realize the full economic value of its investments in PHC and further strengthen the bank’s capital position and support the bank’s medium to long-term growth,” Albalate said.