MANILA, Philippines — Lucio Tan-led Philippine National Bank (PNB) is confident it can sustain its earnings momentum in the second half, citing strong fundamentals, aggressive lending plans and ongoing digital transformation.
PNB president and CEO Edwin Bautista described the bank’s recent performance as “pretty impressive,” pointing to double-digit growth in the first half, strong trading gains and what he believes is a still-undervalued stock price.
“I firmly believe the stock price is still grossly undervalued despite the recent ramp-up,” Bautista said.
“If you compare us — book value, price-to-earnings ratios, return on equity and future growth prospects — it’s still undervalued,” he said.
PNB earlier reported a 22-percent jump in net income in the first half to P12.5 billion. In the second quarter alone, the listed bank posted a 29-percent year-on-year increase to P6.4 billion.
While Bautista declined to provide exact guidance, he confirmed that PNB is targeting double-digit earnings growth for the rest of the year.
“That’s the idea. That’s the plan,” he said.
Bautista said the bank is focused on “future-proofing” its operations following the completion of its core banking modernization.
The next phase, he said, is overhauling other critical systems to build a “more digital PNB.”
He also hinted at a return to the bank’s former status as one of the country’s top lenders.
“There was a time when PNB was the number one bank. Maybe we can aim for the top three, if not number one,” he said.
Founded in 1916, PNB was once the de facto central bank and a major financier of post-war Philippine industries. Bautista said this legacy gives the bank a strong foundation and renewed purpose.
“We want to provide excellent banking services to all Filipinos wherever they are,” he said, citing PNB’s 70 overseas offices, making it the “most global among local banks.”
According to Bautista, PNB is exploring the use of artificial intelligence and data science to improve credit modeling and risk management, continuing practices from his tenure at Union Bank of the Philippines.
“The future is in data science, artificial intelligence, analytics… creating models that predict propensity to buy, probability of default. These are the new tools,” Bautista said.
To date, PNB has a total domestic footprint of over 630 branches and more than 1,700 automated teller machines strategically located nationwide. It also has over 70 overseas branches, representative offices and remittance centers across Asia, Europe, the Middle East and North America.
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