Philippine National Bank (PNB) posted a 5-percent increase in net income to P6.37 billion in the first quarter of 2026, supported by steady growth in core revenues and continued expansion in its loan portfolio.

In a Monday disclosure to the stock exchange, the bank said earnings were driven by higher lending volumes, disciplined balance sheet management and tighter cost controls, allowing it to sustain profitability despite a volatile interest rate environment.

Net interest income and fee-based revenues both rose by 6 percent year-on-year, reflecting stable income streams across core businesses. Total loans expanded by 15 percent, while deposits reached P1.01 trillion, supported by a strong 80-percent current and savings account (CASA) ratio.

“Our return on assets remained solid at 1.91 percent in the first quarter, reflecting efficient asset deployment and the benefits of a balanced loan mix,” said PNB chief financial officer Francis Albalate, noting that the bank continues to generate consistent earnings despite market uncertainties.

Return on equity stood at 10.8 percent, while asset quality remained stable, with the non-performing loan ratio at 4.78 percent.

PNB president and chief executive officer Edwin Bautista said the bank is sustaining momentum through core business growth and ongoing digital investments.

“Despite global economic headwinds, we delivered solid first-quarter progress on the back of a strong balance sheet and growing core income,” Bautista said. “We are building momentum with focused growth, tighter cost control, and improving asset quality—while continuing to push forward our digital and AI initiatives.”

The bank’s performance comes amid a broader trend of resilience in the Philippine banking sector, where lenders continue to benefit from loan growth and stable deposit bases despite external uncertainties and interest rate volatility.

PNB also cited recent recognitions supporting its market position, including an investment-grade rating affirmation with a stable outlook from Moody's Ratings. The bank’s board authorized a cash dividend of P3.30 per share, up 20 percent from last year, equivalent to a 20 percent payout ratio based on its 2025 net income.