PNB net earnings climb 29% in Q2

PHILIPPINE National Bank’s (PNB) net profit jumped by 28.95% year on year in the second quarter amid the continued growth of its core business.

The bank’s net income went up to P6.43 billion in the three months through June, up from P4.98 billion in the same period last year, it said in a disclosure to the stock exchange on Monday.

In the first six months, PNB’s net earnings rose by 21.63% year on year to P12.52 billion from P10.29 billion “on the back of sustained improvements in core revenues consisting of net interest income and net service fees and commissions,” it said.

“The double-digit growth in profitability is a clear indication that the various strategic initiatives that were put in place are gaining traction. We are excited to unlock new revenue streams to boost our net income as we continue to explore the use of technology, including data science and AI (artificial intelligence), in our businesses as well as forge strategic alliances with partners that will add value to our products and services,” PNB President and Chief Executive Officer Edwin R. Bautista said.

In the second quarter, PNB’s net interest income increased by 5.79% to P13.05 billion in from P12.34 billion a year prior.

This brought its net interest earnings for the first half to P25.77 billion, up 7% year on year, “as the bank’s core earning assets consisting of loans and investments securities grew by 5% and 11%, respectively.”

Net service fees and commissions income also went up by 27.76% year on year to P1.39 billion in the second quarter. In the first semester, this went up by 24% to P2.82 billion, which it said was “mostly from deposit transactions, credit cards and the bank’s bancassurance business as the bank intensifies its cross-selling efforts to its customers.”

Meanwhile, other income grew by 5.38% to P1.21 billion in the second quarter from P1.15 billion a year ago, driven by higher trading and foreign exchange gains, bringing the first semester total to P3.14 billion.

As a result, PNB’s total operating income rose by 7.4% year on year to P15.66 billion from P14.58 billion in the second quarter. In the first half, this also went up to P31.73 billion from P28.64 billion.

Meanwhile, the bank’s operating expenses increased by 8.81% year on year to P7.58 billion in the second quarter and by 9% to P15.64 billion in the six months through June “as robust revenue growth translated to higher business taxes and other business-related expenses.”

PNB’s loans and receivables grew by 5.09% to P669.24 billion in the first six months from P636.82 billion at end-2024.

On the funding side, total deposits went up by 3.23% to P1.003 trillion from P971.67 billion. PNB said this was made up mostly of low-cost current and savings account deposits for the first time.

The bank’s assets stood at P1.29 trillion at end-June, up by 2.81% from P1.26 trillion at end-2024. Total equity also rose by 4.29% to P225.93 billion.

Shares of PNB rose by P2.10 or 3.34% to end at P64.90 each on Monday. — Aaron Michael C. Sy