PHILIPPINE National Bank (PNB) on Friday reported a first-half net income of P14.6 billion, up 17 percent from P12.5 billion a year earlier said to have been driven by higher lending, stronger fee-based income and lower credit costs.
The bank said the solid first-half result lifted its return on equity to 12.1 percent from 11.4 percent.
Operating revenue increased by P3.3 billion as net interest income grew seven percent, supported by a 12-percent increase in interest income from loans and a 24-percent decline in deposit costs.
Fee-based income also climbed 17 percent, led by higher bancassurance revenue.
Total loans expanded 10 percent to P764 billion from P696 billion, with corporate and commercial lending increasing 11 percent and consumer loans rising 21 percent.
"We are not seeing any deterioration in the portfolio's credit quality despite the current market environment," he added.
PNB said sustained improvements in asset quality continued to reduce credit costs, with its gross nonperforming loan (NPL) ratio declining to 4.2 percent from 5.5 percent a year earlier.
Total assets increased 4.4 percent to P1.35 trillion from P1.29 trillion, supported by continued loan growth.
"As PNB celebrates its 110th anniversary, our strong first-half performance highlights the strength and resilience of our franchise," President and CEO Edwin Bautista said."We delivered improved profitability, increased our loans and significantly reduced our NPL ratio, demonstrating the quality of our balance sheet and disciplined execution," he added.
The bank's cost-to-income ratio improved to 48.7 percent from 49.3 percent while its common equity tier 1 ratio stood at 19.4 percent and capital adequacy ratio was at 20.3 percent as of end-June.
Bautista said PNB remained resilient despite market volatility, supported by a strong capital position and prudent risk management.
He added that more than 90 percent of the bank's employees had undergone artificial intelligence training as part of the bank’s digital transformation efforts.
Separately, PNB said it was informed by PNB Holdings Corp. that the company has set Sept. 25, 2026 as the target date for the listing of its shares on the Philippine Stock Exchange by way of introduction.
The bank said the planned listing was expected to provide PHC shareholders with an organized and regulated trading venue, improve liquidity and price discovery for its shares, and support the company's long-term value creation objectives through broader market participation.
PNB shares dropped P0.95, or 1.56 percent, to close at P60.00 each on Friday.
