LUCIO Tan-led Philippine National Bank saw a 20-percent increase in its 2025 consolidated net income, to P25.3 billion from P21.2 billion in 2024, amid steady gains from its core banking businesses.
“The sustained earnings growth was driven by the solid performance of its core businesses, strong balance sheet management, prudent cost management, and continued operational efficiency,” the bank said in a statement on Monday.
PNB Chief Financial Officer Francis Albalate said non-interest income supported overall performance as fee-based businesses such as deposits, loans, credit cards, trust operations and bancassurance continued to grow.
“These gains underscore PNB’s expanding franchise and the growing confidence of our customers across all segments,” he said.
The bank said the higher earnings lifted its return on equity to 11.1 percent, up by 70 basis points compared to the prior year, reflecting improved profitability and more efficient use of capital.
Lending remained a key growth driver, with PNB’s total loan portfolio expanding 15 percent year on year. Consumer loans recorded the fastest growth at 27 percent, while corporate and commercial loans increased by 13 percent.
The loan expansion was supported by healthy asset yields and relatively low funding costs, resulting in a net interest margin of 4.51 percent.
The bank’s deposit base grew 9 percent year on year to P1.06 trillion, surpassing the P1-trillion mark in total deposits.
Asset quality also improved as its non-performing loan (NPL) ratio declined to 4.7 percent from 5.7 percent a year earlier.
“This reflects the effectiveness of the Bank’s NPL stabilization strategy, which includes tighter portfolio reviews, the use of dynamic risk-scoring and monitoring models,” it said.
Operating expenses rose at a slower pace than total operating income growth, leading to a better cost-efficiency ratio of 48.2 percent from 49.6 percent in 2024.
PNB President and CEO Edwin Bautista said the bank’s 2025 performance marked another milestone following the completion of major upgrades to its core banking system and ATM switch.
These upgrades, he added, allowed the bank to step up customer acquisition efforts and better capture market opportunities.
“During the year, the bank made significant investments to improve operational efficiency and elevate customer experience by upskilling more than 1,000 employees with competencies in digital-age banking, ethical AI utilization, data protection, and agile methodologies,” Bautista said.
PNB shares on Monday added P1.55, or 2.44 percent, to close at P64.95 each amid a 0.36-percent rise for the benchmark Philippine Stock Exchange index.
