PNB earnings climb 15% to ₱21.3 billion in nine months

Philippine National Bank (PNB) posted a 15% increase in net income to ₱21.3 billion for the first nine months of 2026, from ₱18.5 billion in the same period last year, supported by stronger lending, stable funding, and contributions from non-interest income.

The bank’s return on equity improved to 11.6% from 11%, while return on assets rose to 2.1% from 2%.

Total deposits expanded by 9% year-on-year as of September, with current and savings accounts (CASA) accounting for 78% of the bank’s deposit base. The funding mix, combined with prudent loan pricing, helped sustain a net interest margin of 4.6%.

Gross loans grew 13% to ₱793 billion. Corporate and commercial lending increased 15% to ₱726 billion, while consumer loans rose 11% to ₱66 billion. Mortgage financing accounted for more than 80% of the expansion in the consumer loan portfolio.

PNB also reported an improvement in asset quality, with its gross non-performing loan ratio declining to 4% from 5.2% a year earlier.

The bank attributed the improvement to continued collection and recovery efforts, the resolution of problem accounts, and better credit quality among newly granted loans.

Fee-based and other non-interest income also supported earnings, with growth coming mainly from bancassurance and fees generated by PAL Mabuhay credit cards. Allianz-PNB Life, meanwhile, secured the top spot in the 2026 New Business Bancassurance Industry Ranking.

PNB President and CEO Edwin R. Bautista said the bank’s nine-month results reflected disciplined execution and improving asset quality, while its artificial intelligence initiatives were beginning to generate benefits.

He added that PNB remained adequately capitalized, with a common equity Tier 1 ratio of 19.3% and a capital adequacy ratio of 20%, both above regulatory minimum requirements.

Chief Financial Officer Francis B. Albalate said the successful listing of PNB Holdings Corporation would provide the bank an opportunity to realize the full economic value of its investments in the company, strengthen its capital position, and support medium- to long-term growth.

PNB said its strong capitalization, improving asset quality, and continuing investments in digital capabilities would help it respond to changing customer needs and sustain growth.