PNB eyeing bond issuance

PNB's potential bond issuance next year appears to be a proactive measure for future growth, rather than a response to immediate funding needs. The bank's current deposits are sufficient for its loan growth, and its capital-to-deposit ratio is approaching 20 percent, indicating a strong capital base. This suggests that any new funding would aim to support additional lending capacity, allowing for further balance sheet expansion beyond current levels.

The decision to issue peso- or US dollar-denominated bonds, and whether to target domestic or overseas markets, will depend on the offering's size and market conditions. PNB prefers longer-term funding, with the timing influenced by interest rate movements. The bank also has existing capacity within its sustainability bond program, including for US dollar issuances, providing a ready framework.

PNB reported loan growth of 15 percent year-on-year for the first quarter of 2026, settling at 10 percent for the first half, reaching P764 billion. Net income for the first six months stood at P14.6 billion, up 17 percent from the previous year. While loan growth was below PNB's internal target, it remains among the highest in the industry, driven predominantly by its business-focused loan portfolio. The bank is deliberately slowing credit card expansion due to increasing market pressures, prioritizing secured consumer loans like mortgages.