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Net interest income rose 7 percent as loan income climbed 12 percent while deposit costs fell 24 percent, with fee income also increasing 17 percent on stronger bancassurance sales.
Loans grew 10 percent to P764 billion, driven by an 11 percent increase in corporate and commercial lending and a 21 percent jump in consumer loans, led by housing finance.
Shares or PNB, which is celebrating its 110th anniversary, have gained about 11 percent this year and are currently trading at P60 per share.
Capital cushions uncertainty
“Despite market volatility, PNB remained resilient, supported by a strong capital position and prudent risk management,” PNB president and CEO Edwin Bautista said in a statement on Friday.
“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,” he added.
Cleaner balance sheet lifts returns
PNB ended June with a Common Equity Tier 1 ratio of 19.4 percent and a Capital Adequacy Ratio of 20.3 percent, leaving the bank well-capitalized to support future growth.
The bank cut its gross non-performing loan ratio to 4.2 percent from 5.5 percent a year earlier, helping lift return on equity to 12.1 percent from 11.4 percent while total assets rose 4.4 percent to P1.35 trillion.
“About 90 percent 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,” chief financial officer Francis B. Albalate said.
—Edited by Miguel R. Camus
