Philippine National Bank (PNB) investor relations material

Executive summary

• Consolidated net income for the six months ended June 30, 2026 rose 16.7% year-over-year to P14.6 billion, driven by higher net interest income, service fees, and gains on asset sales.

• Total assets decreased 1.8% to P1.35 trillion from December 31, 2025, mainly due to lower cash placements and trading securities.

• Total equity increased 1.9% to P244.9 billion, supported by net income and translation adjustments, despite unrealized losses on FVOCI assets.

Financial highlights

• Net interest income for H1 2026 grew 7.2% to P27.6 billion, with interest expense down 15.1% due to lower funding costs.

• Net service fees and commission income rose 16.9% to P3.1 billion, led by bancassurance and remittance.

• Other operating income increased 29.9% to P4.3 billion, mainly from gains on asset sales.

• Operating expenses rose 9.1% to P17.1 billion, driven by higher compensation, depreciation, and business support costs.

• Provision for impairment, credit, and other losses reversed to a gain of P0.8 billion, reflecting improved credit quality.

• Earnings per share (basic/diluted) for H1 2026 was P9.53, up from P8.16 year-over-year.

Outlook and guidance

• Management expects continued growth in core lending and fee-based businesses, with focus on asset quality and cost efficiency.

• Planned listing of PNB Holdings shares in September 2026 is expected to enhance liquidity and support strategic objectives.