PNB 9-month profit climbs 15% to P21.3B

Insider Spotlight

• Philippine National Bank's net income rose 15 percent to P21.3 billion in the first nine months of 2026
• Gross loans increased 13 percent to P793 billion, supported by stronger corporate and consumer lending
• Improving asset quality and strong capitalization position PNB for sustainable growth
  
  
  
  

Philippine National Bank (PNB) posted a 15-percent increase in net income to P21.3 billion in the first nine months of 2026, driven by expanding loan volumes, stable funding costs, and improving asset quality.

The bank's earnings rose from P18.5 billion in the same period last year, reflecting sustained lending activity and contributions from fee-based businesses.

Increase in corporate, commercial loans

PNB's gross loan portfolio expanded 13 percent year-on-year to P793 billion as of September 2026.

Corporate and commercial loans increased 15 percent to P726 billion, while consumer loans climbed 11 percent to P66 billion.

Mortgage lending accounted for more than 80 percent of the consumer portfolio's growth.

Total deposits increased nine percent, with current and savings accounts (CASA) representing 78 percent of deposits.

The bank maintained a net interest margin of 4.6 percent, supported by its lower-cost funding base and prudent loan pricing.

Stronger credit quality

PNB's improving loan quality strengthened its financial position as lending expanded.

Its gross nonperforming loan ratio declined to 4 percent from 5.2 percent a year earlier, reflecting collection efforts, resolution of problematic accounts, and stronger credit quality.

Return on equity improved to 11.6 percent from 11 percent, while return on assets increased to 2.1 percent from 2 percent.

Improving asset quality

PNB's fee-based businesses also supported profitability, particularly bancassurance and PAL Mabuhay credit card fees.

Allianz-PNB Life secured the top position in the 2026 New Business Bancassurance Industry Ranking.

“Our nine-month performance and improving asset quality reflect disciplined execution, while our AI initiatives are beginning to deliver benefits. With a CET1 ratio of 19.3 percent and a CAR of 20 percent, PNB remains well-capitalized to support long-term growth," Philippine National Bank president and CEO Edwin R. Bautista said in a press statement. 

Full economic value of investments

PNB expects the listing of PNB Holdings Corp. to support its capital position and medium- to long-term growth.

“The successful listing of PNB Holdings Corp. will allow the Bank an opportunity to realize the full economic value of its investments in PHC and further strengthen the Bank’s Capital position and support the Bank’s medium to long-term growth,” Philippine National Bank chief financial officer Francis B. Albalate said. 

The bank continues investing in digital capabilities while maintaining capital ratios above regulatory requirements. —Vanessa Hidalgo | Ed: Corrie S. Narisma