PNB targets strong profit growth amid consumer push

PHILIPPINE NATIONAL Bank (PNB) targets to sustain its strong profit growth this year as it continues to expand its core businesses, backed by its investments in technology and strong capital position.

The bank is looking to ramp up its consumer business as its modernized core banking system and risk buffers give it ample room for further growth, PNB President and Chief Executive Officer Edwin R. Bautista told reporters on the sidelines of a central bank event on Friday.

“Number one, if you look at our capital adequacy ratio, we’re pushing 20%. We’re overcapitalized. That means that we don’t have capital constraints. We can be more aggressive,” he said.

“Last year, we fixed our core banking [system]. We modernized. So, normally, if you attack the consumer business, that’s one of your fears. Will my system break? Since it’s modern, it gives us confidence that we can push it.”

PNB’s attributable net income rose by 25.88% year on year to P5.96 billion in the third quarter of 2025 amid higher revenues. This brought its nine-month profit to P18.42 billion, up by 23.18% from the same period in 2024.

Meanwhile, its capital adequacy ratio was at 20.79% as of end-September 2025.

Revenues are also expected to expand at the same double-digit pace amid widening margins and improving asset quality, Mr. Bautista added.

They also expect to post a better cost-to-income ratio as the bank has already completed the upgrade of its core banking system, which made up bulk of its capital expenditures, he said.

Meanwhile, PNB is also looking to bring down its branch count to 600 from the current 635 as it continues to streamline its network, Mr. Bautista said, adding that this number could drop to 500 in the near term.

“We might get there eventually at this rate. The BSP (Bangko Sentral ng Pilipinas) just announced the rate of digitization in the Philippines is faster than their original forecast. People are shifting to digital much faster,” he said.

“We fixed the core bank. The next thing there is we can now use AI (artificial intelligence) and automation to drive the streamlining of our processes. The natural consequence would be streamlining.”

Mr. Bautista said they target to become one of the country’s three biggest banks in terms of assets, capital, and net income in the coming years.

“We are realistic. But we can get to top three. PNB was number one before. So, we’ve been there. You want to retain the glory of old. But we’re not in a hurry,” he said.

PNB was the eighth-biggest bank in asset terms at end-September 2025 with P1.24 trillion, central bank data showed. All private banks in the top three have assets above P3 trillion.

Shares in PNB declined by 25 centavos or 0.41% to close at P61.10 apiece on Monday. — A.M.C. Sy