Philippine National Bank delivered strong financial results for the first half of 2026, posting a net income of ₱14.6 billion—a 17% increase year-on-year from ₱12.5 billion in the same period last year.
The bank’s solid performance boosted its Return on Equity (ROE) to 12.1%, up from 11.4% a year ago, reflecting an enhanced earnings profile and disciplined balance sheet execution as PNB marks its 110th anniversary.
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Net Income: ₱14.6 billion, up 17% YoY.
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Return on Equity (ROE): Improved to 12.1% from 11.4%.
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Gross Loans: Expanded by 10% YoY to ₱764 billion, driven by an 11% increase in corporate and commercial lending and a 21% surge in consumer loans.
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Total Assets: Grew 4.4% YoY to reach ₱1.35 trillion.
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Asset Quality: Gross Non-Performing Loan (NPL) ratio dropped significantly to 4.2% from 5.5% a year prior.
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Cost Efficiency: Cost-to-income ratio improved to 48.7% from 49.3%.
Operating revenue rose by ₱3.3 billion during the period. Net interest income grew by 7%, anchored by a 12% expansion in interest income on loans and a 24% reduction in deposit costs, reflecting more efficient deposit utilization and a higher loan-to-deposit ratio. Non-interest income also performed strongly, with fee-based revenues climbing 17%, led primarily by gains in bancassurance.
Consumer lending experienced robust growth, jumping 21% year-on-year. About 90% of this growth was concentrated in secured lending, particularly housing loans.
“We are not seeing any deterioration in the portfolio’s credit quality despite the current market environment,” noted Francis B. Albalate, Chief Financial Officer of PNB.
Lower credit costs and healthier loan portfolios contributed to the significant drop in PNB’s gross NPL ratio to 4.2%, confirming sustained improvements in asset quality and prudent risk underwriting.
PNB maintained operational discipline despite ongoing business expansion. The bank’s cost-to-income ratio improved to 48.7%, benefiting from strategic branch optimization and structural efficiency initiatives that cushioned continued investments in core operations.
“As PNB celebrates its 110th anniversary, our strong first-half performance highlights the strength and resilience of our franchise,” said Edwin R. Bautista, President and CEO of PNB. “We delivered improved profitability, increased our loans, and significantly reduced our NPL ratio—demonstrating the quality of our balance sheet and disciplined execution.”
Bautista emphasized PNB’s readiness for future growth through risk discipline and technology integration:
“Despite market volatility, PNB remained resilient, supported by a strong capital position and prudent risk management. As we continue our role in nation-building, we are also advancing our AI transformation journey with more than 90% of our employees trained in artificial intelligence, reinforcing our commitment to responsible AI governance, innovation, and a future-ready workforce.”
