PNB nine-month profit rises 15% to P21.3 billion

Philippine National Bank (PNB) reported a 15 percent increase in net income to P21.3 billion in the first nine months of 2026, from P18.5 billion a year earlier, as lending expanded and asset quality improved.

In a Friday disclosure, the bank said its gross loans grew 13 percent year on year to P793 billion as of September, led by a 15 percent increase in corporate and commercial loans to P726 billion. Consumer loans rose 11 percent to P66 billion, with mortgage loans accounting for more than 80 percent of the portfolio’s growth.

Total deposits increased 9 percent year on year, while the current and savings account (CASA) ratio stood at 78 percent. PNB reported a net interest margin of 4.6 percent.

Asset quality improved, with the gross nonperforming loan (NPL) ratio falling to 4 percent from 5.2 percent a year earlier. The bank attributed the decline to collection and recovery efforts, the resolution of problem accounts and stronger credit quality among newly booked loans.

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

Fee-based and other non-interest income also contributed to earnings, driven mainly by bancassurance and PAL Mabuhay credit card fees. Allianz-PNB Life ranked first in the 2026 new-business bancassurance industry ranking, the bank said.

PNB President and CEO Edwin R. Bautista said the bank’s improving asset quality and investments in artificial intelligence were supporting its performance.

“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% and a CAR of 20.0%, PNB remains well-capitalized to support long-term growth,” Bautista said.

PNB said both capital ratios remained above regulatory minimum requirements.