LT Group, Inc. announced an attributable net income of Php7.49 billion for the first quarter of 2026 (1Q26), representing a 3% increase compared to the Php7.24 billion reported in the same period last year (1Q25).
The conglomerate’s diversified portfolio delivered stable growth, led by its banking and tobacco businesses.
Key financial highlights and capital allocation:
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Strategic Contributions: Philippine National Bank (PNB) remained the largest contributor, accounting for Php3.58 billion or 48% of total net income. Fortune Tobacco Corporation (FTC) contributed Php2.85 billion (38%). Tanduay Distillers, Inc. added Php572 million (8%), while Eton Properties and Victorias Milling Company (VMC) chipped in Php154 million (2%) and Php158 million (2%), respectively. Asia Brewery and other assets accounted for the remaining 2%.
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Strong Dividend Payout: In February 2026, LTG rewarded shareholders with a total dividend payout of Php3.25 billion. This included a regular dividend of Php0.15 per share and a special dividend of Php0.15 per share, translating to a payout rate of 10.4%.
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Robust Balance Sheet: As of March 31, 2026, LTG’s debt-to-equity ratio stood at 3.00:1 with the Bank included, and an exceptionally conservative 0.09:1 excluding the Bank. The parent company maintained a strong liquidity position with a cash balance of Php2.08 billion.
PNB’s total net income rose 5% year-on-year to Php6.37 billion in 1Q26.
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Net Interest Income: Reached Php13.46 billion (up 6% y-o-y). Gross interest income rose 1% to Php17.29 billion, fueled by higher loan volumes, while gross interest expenses dropped 14% to Php3.83 billion due to reduced interest costs on bonds payable.
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Core Fees & Other Income: Net service fees and commissions grew 6% to Php1.51 billion, driven by bancassurance, deposits, and loan products. Other income surged to Php1.94 billion (up from Php1.07 billion in 1Q25) due to higher gains from Real and Other Properties Acquired (ROPA) sales.
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Market Headwinds & Expenses: Unfavorable market conditions led to a net trading and investment loss of Php230 million, reversing a Php862 million gain in 1Q25. Operating expenses increased marginally by 2% to Php8.53 billion to support expanding operational demands.
Fortune Tobacco Corporation (FTC)
FTC’s net income edged up 2% to Php2.86 billion in 1Q26, supported by higher dividend income from its 49.6%-owned associate, PMFTC. This offset a minor dip in equitized earnings (Php2.60 billion vs. Php2.76 billion in 1Q25) caused by lower cigarette shipment volumes.
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Volume & Pricing: Total industry volume grew 5% to 11.8 billion sticks. While PMFTC’s shipment volume fell 4% to 5.4 billion sticks, underlying sales volumes remained stable when adjusted for timing in inventory movements.
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Excise Tax & Price Adjustments: In compliance with Republic Act 11346, PMFTC implemented a price adjustment in March 2026 to absorb the annual 5% excise tax increase, which now stands at Php69.46 per 20-stick pack. Per-stick retail prices are now set at Php11 for Marlboro Red Titanium Edition, Php10 for Marlboro Red, Php9 for Marlboro Crafted and Fortune, and Php8 for Chesterfield.
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Transformation & Anti-Smuggling Success: PMFTC continues its push toward a smoke-free future, deploying a new B2B educational toolbox to help business partners increase awareness of harm-reduction and alternative nicotine products. Furthermore, sustained government enforcement has successfully driven a decline in illicit tobacco incidence for the first time in six years.
