The Market Monitor Minding the Nation's Business
Philippine National Bank (PNB) reported consolidated net income of ₱25.3 billion for full-year 2025, a 20% increase from 2024, boosting return on equity to 11.1%, up 70 basis points from the previous year.
The strong performance was fueled by solid core business results, efficient balance sheet management, cost discipline, and operational efficiency.
PNB’s loan portfolio expanded 15% year-on-year, led by consumer loans, which rose 27%, while corporate and commercial loans grew 13%. Healthy asset yields and low funding costs helped sustain a net interest margin of 4.51%.
The bank’s deposit base also exceeded ₱1 trillion, reaching ₱1.06 trillion, a 9% increase from December 2024.
Asset quality improved significantly, with the non-performing loan (NPL) ratio falling to 4.7% from 5.7% in 2024, reflecting the effectiveness of portfolio reviews, dynamic risk scoring, and proactive client engagement.
Chief Financial Officer Francis Albalate highlighted the growth in non-interest income, noting contributions from deposits, loans, credit cards, trust operations, and bancassurance. “These gains underscore PNB’s expanding franchise and the growing confidence of our customers across all segments,” he said.
Operating expenses grew more slowly than total operating income, improving the cost-efficiency ratio to 48.2% from 49.6% in 2024.
President and CEO Edwin Bautista said the bank’s performance marked another milestone, following the modernization of its core banking system and ATM switch. “Our digital app user base increased by 26%, reflecting the trust of our customers as we continue to enhance our digital capabilities,” Bautista said. He added that PNB invested in upskilling over 1,000 employees in digital-age banking, ethical AI, data protection, and agile methodologies to strengthen organizational readiness for growth.
PNB also reinforced its partnership with Mastercard, supporting tokenization for digital payments and enhancing security and customer experience in digital wallets.
PNB Digital, the bank’s mobile app, was named “Best Mobile Banking Experience in the Philippines” at the International Business Magazine Awards 2025, marking its third international recognition.
The bank successfully raised ₱15.7 billion through a dual-tranche ASEAN Sustainability Bond issuance under its ₱50 billion Bond and Commercial Paper Program, oversubscribed more than five times, signaling strong investor confidence.
Additionally, PNB Trust was recognized by The Asset as one of the Top Investment Houses for the second consecutive year, highlighting its strength in trust and investment management services.