PNB posts 17% jump in first-half profit

Philippine National Bank (PNB) posted a 17% increase in net income to ₱14.6 billion in the first half of 2026, driven by higher lending, stronger fee-based income and improved asset quality.

The bank’s return on equity improved to 12.1% from 11.4% a year earlier as operating revenue increased by ₱3.3 billion. Net interest income rose 7%, supported by a 12% increase in interest earnings from loans and a 24% decline in deposit funding costs. Fee-based income also climbed 17%, led by higher bancassurance revenues.

PNB’s total assets grew 4.4% year-on-year to ₱1.35 trillion, while its loan portfolio expanded 10% to ₱764 billion from ₱696 billion.

Corporate and commercial loans rose 11%, while consumer lending surged 21%, with housing loans accounting for nearly 90% of the increase in consumer financing.

“About 90% of consumer loan expansion during the first half of the year was in the secured lending area, particularly housing loans. We are not seeing any deterioration in the portfolio’s credit quality despite the current market environment,” said Chief Financial Officer Francis B. Albalate.

The bank also reported continued improvement in asset quality, with its gross non-performing loan (NPL) ratio declining to 4.2% from 5.5% a year ago as credit costs continued to fall.

PNB President and Chief Executive Officer Edwin R. Bautista said the bank’s first-half performance reflects the strength of its franchise as it marks its 110th anniversary.

“As PNB celebrates its 110th anniversary, our strong first-half performance highlights the strength and resilience of our franchise. 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.

He added that the bank remains financially resilient despite market volatility, backed by strong capital levels and prudent risk management. Bautista also said PNB is advancing its artificial intelligence transformation, with more than 90% of its employees already trained in AI to support innovation and responsible adoption of the technology.

Meanwhile, the bank’s cost-to-income ratio improved to 48.7% from 49.3% a year earlier, while its Common Equity Tier 1 ratio stood at 19.4% and Capital Adequacy Ratio at 20.3% as of end-June, reflecting a strong capital position.