Philippine National Bank (PSE: PNB), one of the country’s biggest banks, announced that it made more money in the first six months of 2026 compared to the same time last year. According to their press release, the bank’s earnings grew by 17% to P14.6 billion, up from P12.5 billion during the same period in 2025.

What Does This Mean in Simple Terms?

Think of a bank like PNB as a business that makes money mainly by lending to people and companies, and by charging fees for different services. When we say their “net income” increased by 17%, it means the bank’s profit (the money left after paying all their expenses) grew significantly.

The bank’s return on equity (ROE) also improved to 12.1% from 11.4%. This is like a grade that shows how well the bank is using the money that its owners (shareholders) have invested in it. A higher number means the bank is doing a better job.

How Did PNB Make More Money?

According to the press release, PNB increased its operating revenue by P3.3 billion through several ways:

• More income from loans: The bank earned 12% more from the interest people and businesses pay on their loans
• Lower costs on deposits: What the bank pays to people who keep their money in savings accounts went down by 24%
• More fees from services: Fee-based income grew 17%, especially from bancassurance (selling insurance products through the bank)

The Bank’s Loans Are Growing

PNB lent out more money during this period. Their total loans grew 10% to P764 billion from P696 billion a year ago. This growth came from:

• Corporate and commercial loans (money lent to businesses): up 11%
• Consumer loans (money lent to regular people): up 21%

Chief Financial Officer Francis B. Albalate explained that about 90% of the consumer loan growth came from “secured lending,” particularly housing loans. Secured lending means the loan is backed by something valuable, like a house, which makes it safer for the bank.

Better Loan Quality

One important improvement is that PNB’s “bad loans” are decreasing. The bank’s gross NPL (non-performing loan) ratio dropped to 4.2% from 5.5% a year ago. Non-performing loans are loans where people or businesses have stopped paying. A lower number means more borrowers are paying their loans on time, which is good for the bank’s health.

The Bank Is Growing Stronger

PNB’s total assets (everything the bank owns) reached P1.35 trillion, up 4.4% from P1.29 trillion a year ago. The bank’s cost-to-income ratio also improved to 48.7% from 49.3%, which means PNB is managing its expenses better even as it grows.

Strong Financial Position

The bank maintains strong capital reserves with a Common Equity Tier 1 (CET 1) ratio at 19.4% and Capital Adequacy Ratio (CAR) at 20.3% as of June 2026. These are like safety cushions that banks keep to protect themselves during difficult times. Higher numbers mean the bank is well-protected.

What the Leaders Are Saying

Edwin R. Bautista, PNB’s President and CEO, highlighted that these results come as the bank celebrates its 110th anniversary. He noted that despite market volatility (meaning ups and downs in the economy), PNB remained strong thanks to good capital position and careful risk management.

Bautista also mentioned that PNB is investing in artificial intelligence (AI), with more than 90% of employees trained in AI, showing the bank’s commitment to modernizing its operations.

About Philippine National Bank

PNB is one of the Philippines’ largest private universal banks and has been serving customers for over 110 years. The bank serves different types of customers including individual depositors, small and medium businesses, large corporations, government agencies, and overseas Filipinos.

This article is based on the company’s official press release and disclosures filed with the Philippine Stock Exchange’s Electronic Disclosure Generation Technology (PSE EDGE) system. For the complete and official version of the announcement, readers may visit the PSE EDGE website and search for the company’s filing directly.