Core lending, fee drive PNB net income higher

Philippine National Bank (PSE: PNB) posted a consolidated net income of P18.5 billion for the first nine months of the year, a 23 percent increase from the year-earlier period, driven by growth in core lending, investment securities, and fee-based income.

Total revenues rose by 8 percent, supported by the 9 percent expansion in loans and 13 percent growth in investment securities, while fee-based income added another 18 percent. Other income climbed 4 percent year on year, reflecting the bank’s continued disposal of acquired assets and steady foreign exchange gains.

Operating expenses grew 9 percent, in step with rising business volumes, while provisions for impairment and credit losses plunged 87 percent, reflecting improved credit quality and lower non-performing loans.

“The bank is now harvesting the benefits from focusing on the improvement in the quality of the lending portfolio through deliberate acquisition of quality customers and improvements in the credit and lending processes and policies,” said Chief Financial Officer Francis Albalate.

At the end of September 30, PNB had total assets stood at P1.25 trillion, with total liabilities of P1.02 trillion. Capital increased by 8 percent from December 2024 levels, underscoring the bank’s stronger financial position.

PNB President Edwin Bautista expressed optimism for the rest of the year, citing plans to accelerate growth across corporate, commercial, and consumer segments. “Our ongoing digitalization efforts will expand opportunities across all areas of the business as we continue to enhance customer service,” he said.

Meanwhile, PNB Capital, the bank’s investment banking arm, earned recognition for excellence in sustainable finance, bagging the awards for Renewable Energy Deal of the Year – Solar and Rooftop Solar. PNB also notched its fifth consecutive win as Best Bank for Investment Research in the Philippines from Euromoney.