PNB’s Net Income Rises by 15% to P6.1 Billion in 1Q 2025

Philippine National Bank (PSE: PNB) posted a consolidated net income of P6.1 billion in the first three months of 2025, up by 15% against the same period last year.

Core income for the first quarter of 2025 amounted to P14.1 billion, increasing by 10% from the same period last year, with net interest margin growing by 9% year-on-year to P12.7 billion. This is mainly due to the combined effect of the increase in the Bank’s loan portfolio and treasury assets.

Other income increased to P1.9 billion in 1Q 2025 from year-ago level of P1.2 billion, mainly boosted by gains from trading and foreign exchange transactions as well as the sale of foreclosed properties.

Operating expenses were higher by 10% at P8.1 billion as the Bank continued to pursue its strategy to grow its consumer business segment. Similarly, taxes and licenses went up as a consequence of increase in the Bank’s business volume increase.

Provision for impairment losses is at P277 million, 55% lower than the year-ago level with the continued improvement in the Bank’s quality of its loan portfolio through enhanced credit underwriting and sound management practices.

“The first quarter financial results this year reflect the strength of PNB’s franchise in its wholesale and retail businesses. Excluding the impact of non-recurring gains from the sale of foreclosed assets, the growth in the Bank’s core income continued to drive the Bank’s earning momentum,” PNB President Florido Casuela said. “We expect that the quality of the Bank’s earnings will further improve since we have already put in place the necessary foundation for the Bank’s sustained stability and accelerated growth.” he added.

Total assets as of March 31, 2025 amounted to P1.28 trillion, 2% higher than the December 31, 2024 level. Net loans and receivables increased to P655.9 billion level and deposit liabilities at P988.3 billion.

Moody’s recently upgraded PNB’s credit rating to Baa2, one notch above investment grade, from Baa3 last year and at the same time changed its rating outlook to Stable from Positive. The Moody’s rating action reflected PNB’s continued improvement in core profitability driven by NIM expansion and lower credit costs, robust capital and solid liquidity, which will provide sufficient buffers against the Bank’s modest asset quality.

PNB continued to garner recognition from various award-giving bodies in 2025. PNB earned two Triple A awards from The Asset for the Bank’s remarkable commitment to sustainable financing, viz: a) for the Parent Bank, the ‘Best Sustainability Bond – Financial Institution’ award for issuing US$300 million sustainability bond; and b) for its subsidiary, PNB Capital Inc. as a domestic underwriter for Best IPO Award for Citicore Renewable Energy Corp. After a five-year hiatus in the offshore bond market, PNB successfully tapped into the international market with the issuance of US$300 million 5-year Sustainability Bond in October 2024. Meanwhile, PNB Capital was cited for being one of the domestic underwriters for the Citicore Renewable Energy Corporation’s P5.3-billion-peso initial public offering, which was awarded as the ‘Best IPO’.

Furthermore, PNB Trust Banking Group’s Profit Peso Bond Fund was recently awarded as one of the Best Managed Funds for 2025 under the Intermediate Term Bond Fund category at the “Vision 2025: Market Forecast and Fund Excellence” of the CFA Society Philippines. The event recognized funds that demonstrated superior performance based on key metrics, such as risk-adjusted returns for actively managed funds and tracking error for index funds.