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, supported by loan growth and improving asset quality.
“Our nine-month performance and improving asset quality reflect disciplined execution, while our AI (artificial intelligence) initiatives are beginning to deliver benefits,” PNB President and CEO Edwin Bautista said in a statement on Friday.
PNB’s return on equity improved to 11.6 percent from 11 percent a year earlier, while return on assets rose to 2.1 percent from 2 percent.
Gross loans increased 13 percent year on year to P793 billion as of September 2026, with corporate and commercial lending accounting for the bulk of the portfolio.
Corporate and commercial loans grew 15 percent to P726 billion, while consumer loans increased 11 percent to P66 billion. Mortgage loans accounted for more than 80 percent of the growth in the consumer loan portfolio, the bank said.
Asset quality also improved, with the gross nonperforming loan ratio declining to 4 percent from 5.2 percent a year earlier.
PNB attributed the improvement to sustained collection and recovery efforts, the resolution of nonperforming accounts and stronger credit quality among newly booked loans.
Total deposits grew 9 percent year on year as of September, with current and savings accounts accounting for 78 percent of total deposits. The bank reported a net interest margin of 4.6 percent, supported by its deposit base and loan pricing.
Fee-based and other noninterest income also contributed to earnings, primarily through bancassurance and PAL Mabuhay credit card fees. Allianz-PNB Life Insurance Inc. attained the top position in the 2026 new business bancassurance industry ranking, the bank said.
PNB’s capital position remained strong, with a common equity tier 1 ratio of 19.3 percent and a capital adequacy ratio of 20 percent, both above regulatory minimum requirements
Chief Financial Officer Francis Albalate said the successful listing of PNB Holdings Corp. gives the bank an opportunity to realize the full economic value of its investments in the company and further strengthen PNB’s capital position and medium- and long-term growth.
The bank said continued investment in digital capabilities, alongside its capitalization and asset quality, would support efforts to meet customer needs and pursue sustainable growth.
Shares of the bank on Friday rose P1.10, or 1.44 percent, to close at P77.55 each, outperforming a weaker broader market, with the benchmark Philippine Stock Exchange index finishing down 0.88 percent.
