PNB’s 2025 net profit climbs 20%

PHILIPPINE NATIONAL Bank’s (PNB) net income jumped by 20% in 2025 as its consumer business posted strong growth.

The bank’s attributable net profit rose to P25.26 billion last year from P21.05 billion in 2024, it said in a disclosure to the stock exchange on Monday.

This translated to a return on equity of 11.09%, up from 10.39% a year prior, and a return on assets of 1.93%, higher than 1.72% in 2024.

“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,” PNB said.

Net interest income rose by 6.51% to P52.55 billion last year from P49.34 billion in 2024.

This came as its interest income went up to P69.68 billion from P67.46 billion, while interest expense decreased to P17.13 billion last year from P18.12 billion in 2024.

As a result, net interest margin improved to 4.51% from 4.5%.

PNB’s net service fees and commission income increased by 5.81% to P5.83 billion from P5.51 billion.

Other operating income, which includes trading, investment, and foreign exchange gains, surged by 40.24% to P6.9 billion from P4.92 billion.

This brought the bank’s total operating income last year to P65.28 billion, up by 9.2% from P59.78 billion in 2024.

“Fee-generating businesses including deposits, loans, credit cards, trust operations, and bancassurance, and other non-interest earnings provided solid support to the bank’s performance for 2025, which is a reflection of the bank’s strengthened vigor towards expanding its revenue capabilities. Together, these gains underscore PNB’s expanding franchise and the growing confidence of our customers across all segments,” PNB Chief Financial Officer Francis B. Albalate said.

Meanwhile, the bank’s total operating expenses went up by 6.14% to P31.45 billion last year from P29.63 billion in 2024.

Its cost efficiency ratio improved to 48.17% from 49.57%.

PNB set aside loan loss provisions amounting to P1.66 billion last year, down from P3.87 billion in 2024.

Its nonperforming loan (NPL) coverage ratio edged down to 82.34% from 84.84%.

Meanwhile, the bank’s gross NPL ratio declined to 4.72% last year from 5.68%, showing improved asset quality.

“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. Active engagement with the bank’s corporate and commercial clients allowed for timely intervention and more effective account resolution,” it said.

Total loans and receivables were at P740.02 billion at end-2025, growing from P636.82 billion in 2024.

PNB said consumer loans posted the “biggest” increase at 27%, while its corporate and commercial portfolio grew by 13%.

“The sustained growth momentum in lending activities was supported by healthy asset yields and a low funding cost base,” it said.

Deposits grew to P1.06 trillion at end-2025 from P971.67 billion the year prior.

As a result, the bank’s net loan-to-deposit ratio rose to 68.58% from 64.43%.

PNB’s assets stood at P1.37 trillion last year, up by 9.32% from P1.26 trillion in 2024.

Total equity was at P240.28 billion, rising from P216.63 billion the year prior.

Capital adequacy ratio was at 20.12%, edging up from 20.1% in 2024, while common equity Tier 1 ratio rose to 19.31% from 19.21%.

“After completing the modernization of our core banking system and ATM (automated teller machine) switch, we significantly enhanced our customer acquisition efforts and expanded our ability to capitalize on market opportunities,” PNB President and Chief Executive Officer Edwin R. Bautista said.

“For digital banking, our digital app user base increased by 26%, a testament to the growing trust of the bank’s customers as we continue to enhance and upgrade our digital capabilities. 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 (artificial intelligence) utilization, data protection, and agile methodologies — further strengthening organizational readiness for future growth.”

PNB’s shares rose by P1.55 or 2.44% to close at P64.95 apiece on Monday. — AMCS