The Market Monitor Minding the Nation's Business
The Philippine National Bank (PSE: PNB) reported a net income of ₱6.37 billion for the first quarter of 2026, marking a 5 percent year-on-year increase, supported by sustained growth in core banking operations, higher lending activity, and disciplined cost management.
The bank said growth was driven by improved loan volumes and steady expansion in its revenue streams despite a volatile interest rate environment.
Net interest income rose by 6 percent, while net fee income also increased by 6 percent, reflecting the bank’s ability to broaden earnings sources while maintaining operational efficiency.
PNB’s total loan portfolio expanded by 15 percent year on year, while total deposits reached ₱1.01 trillion. The bank also maintained a strong 80 percent low-cost Current and Savings Accounts (CASA) ratio, helping support funding stability.
According to Chief Financial Officer Francis Albalate, “Our return on assets (ROA) remained solid at 1.91% in the first quarter, reflecting efficient asset deployment and the benefits of a balanced loan mix that continues to support consistent earnings despite an uncertain rate environment.”
Return on equity (ROE) stood at 10.8 percent, underscoring continued profitability. Asset quality remained stable, with the non-performing loan (NPL) ratio recorded at 4.78 percent.
PNB President and CEO Edwin Bautista said the bank delivered steady performance despite global headwinds.
“Despite global economic headwinds, we delivered solid first quarter progress on the back of a strong balance sheet and growing core income. We are building momentum with focused growth, tighter cost control, and improving asset quality—while continuing to push forward our digital and AI initiatives, regardless of the market cycle,” Bautista said.
The bank also recently received affirmation of its investment-grade credit rating from Moody’s Ratings, which maintained a “stable outlook” and cited PNB’s strong capital position among its peers.
PNB was likewise included in Forbes’ World’s Best Banks 2026 list, published with Statista, ranking among only eight Philippine banks recognized globally. The survey, covering more than 54,000 respondents across 34 countries, assessed institutions based on trust, customer service, digital services, terms and conditions, and financial advice quality.
The bank also earned recognition from the Philippine Dealing System (PDS) Group as Top Fixed Income Brokering Participant during the 21st PDS Annual Awards Night, marking its th