PNB plans up to P20-billion bond sale after strong first-half income

Philippine National Bank (PNB), the banking unit of tycoon Lucio Tan, plans to raise up to P20 billion through a bond issuance. The move follows strong financial results for the first half of 2025.

PNB’s board approved the bond sale, with an initial offering of P3 billion and an option to upsize to P20 billion. The bonds will be issued under its P50-billion bond and commercial paper program.

The bank reported a net income of P12.5 billion in the first half of 2025, a 22-percent increase from the same period last year.

The growth was driven by higher interest income and a significant rise in service fees. Net income for the second quarter alone reached P6.4 billion, up 29 percent from a year ago.

Net interest income in the first half of 2025 climbed 7 percent to P25.8 billion, supported by a 5-percent growth in loans and 11-percent increase in investment securities.

Net service fees and commissions also jumped 24 percent to P2.8 billion, boosted by deposit transactions, credit cards and bancassurance.

Trading and foreign exchange income grew 64 percent year-on-year to P1.4 billion.

Operating expenses, excluding provisions for credit losses, rose by 9 percent due to higher business taxes and other operational costs tied to revenue growth.

“We are heartened by the bank’s positive financial results for the first half of 2025,” said PNB President and chief executive Edwin Bautista.

“The double-digit growth in profitability is a clear indication that the various strategic initiatives that were put in place are gaining traction,” he said.

Bautista said the bank is “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, in our businesses as well as forge strategic alliances with partners that will add value to our products and services.”

PNB’s total assets stood at P1.29 trillion as of end-June 2025, while deposits breached the P1-trillion mark.

PNB recently teamed up with Japan’s leading mobile remittance platform, Digital Wallet Corp. (DWC), to provide more accessible, affordable and reliable financial services for Filipinos globally.