PNB net income up 17% in H1 2026

The Philippine National Bank (PNB) on Friday reported a 17% increase in net income for the first half of 2026, driven by double-digit growth in lending and fee-based income.

PNB's net income rose to P14.6 billion from P12.5 billion a year earlier, lifting its return on equity (ROE) to 12.1% from 11.4%.

Operating revenue increased 7% to P3.3 billion, supported by a 12% rise in interest income from loans and a 24% decline in deposit costs. Fee-based income climbed 17%, largely due to higher bancassurance revenue.

Total loans expanded 10% to P764 billion, with corporate and commercial lending rising 11% and consumer loans growing 21%.

"About 90% of consumer loan expansion during the first half of the year was in the secured lending area, particularly housing loans," PNB Chief Financial Officer Francis Albalate said in an emailed statement.

"We are not seeing any deterioration in the portfolio's credit quality despite the current market environment," he added.

The bank's cost-to-income ratio improved to 48.7% from 49.3% a year earlier. As of end-June, its common equity Tier 1 (CET1) ratio stood at 19.4%, while its capital adequacy ratio (CAR) was 20.3%.

"We delivered improved profitability, increased our loans and significantly reduced our NPL ratio — demonstrating the quality of our balance sheet and disciplined execution," PNB President and Chief Executive Officer Edwin Bautista said.

"Despite market volatility, PNB remained resilient, supported by a strong capital position and prudent risk management," he added.

In January, Bautista said PNB aims to at least match—and possibly exceed—its 2025 growth as the bank adopts a more aggressive expansion strategy following the modernization of its core banking system.

PNB posted a 20% increase in consolidated net income in 2025, backed by sustained strength in its core lending business. —VBL, GMA News