Philippine National Bank (PNBPM)
Philippines / Banking
Active
Issuer Summary
Philippine National Bank is a Philippine private universal bank with domestic deposits above PHP 1tn, a broad branch and overseas remittance network, and thick regulatory capital. Its 2025 earnings growth, improved NPL ratio, 19.31% CET1 ratio, and Moody's Baa2/Stable reporting support its standalone bank credit assessment, but its NPL ratio remains above the system average, and the quality of loan growth as well as foreign-currency and individual bond terms are unverified. Senior credit can be viewed in the context of an investment-grade bank, while individual senior unsecured bonds, subordinated and regulatory capital instruments, and foreign-currency bonds require additional verification of ratings, ranking, loss absorption, foreign-currency liquidity, and related-party risk.
The current credit assessment is that PNB can be treated as an investment-grade bank for senior issuer credit, but not placed in the same low-risk category as the top Philippine banks. PNB is supported by deposits above PHP 1tn, a reported CASA ratio of around 75-80%, an end-2025 CET1 ratio of 19.31%, total capital ratio of 20.12%, and 2025 net income of PHP 25.3bn, giving it standalone credit resilience as a bank. However, ratings and terms for individual senior unsecured bonds, foreign-currency bonds, and subordinated or regulatory capital instruments are unverified. The credit direction is mildly improving to stable, but the Q1 2026 earnings growth rate was only about 5% and the NPL ratio remained high at 4.78%, so this should not be viewed as a rapid improvement phase. The view should be revisited if loan growth quality, renewed NPL increase, deposit / CASA decline, and foreign-currency liquidity all deteriorate at the same time.
This credit profile is supported by the domestic deposit base, low-cost deposits, capital ratios, improved profitability, and broad access to overseas Filipino and corporate customers. PNB is not as large as the top-tier banks, but it is not a small bank either. With 631 domestic branches, 1,719 ATMs, and 70 overseas offices and related locations, its franchise connecting individuals, SMEs, corporates, and overseas Filipinos supports deposits and fee income. Moody's Baa2/Stable reporting is also an external assessment indicating that the market treats PNB as an investment-grade bank, but it does not substitute for checking ratings on individual bonds.
The main constraint is asset quality. The 2025 NPL ratio improved from 5.7% to 4.7%, but remained above the system average of 3.1%. It was also 4.78% in Q1 2026, so improvement has not accelerated. Given 15% loan growth, future NPLs and credit costs are the central indicators for PNB’s credit view. Whether growth in consumer loans and corporate / commercial lending reflects acquisition of good-quality customers or increased risk-taking for yield has not been fully verified at this stage.
Issuer Reports
Current public reports for this issuer.