Philippine National Bank
Company typePublic
IndustryFinance and Insurance
FoundedJuly 22, 1916; 107 years ago (1916-07-22)
Manila, Philippines
PNB Financial Center, Macapagal Boulevard, Pasay
Key people
Edgar A. Cua, (Chairman)
Leonilo G. Coronel, (Vice Chairman)
Florido P. Casuela, (President & CEO)
Lucio C. Tan, (Chairman Emeritus)
ServicesFinancial services
759.67 million Decrease (2020)[1]
31.7 billion Increase (2021)[2]
Total assets1.19 trillion Decrease (2021)[2]
Total equity161.22 billion Increase (2021)[2]
OwnerLT Group
Number of employees

The Philippine National Bank (PNB, Filipino: Bangko Nasyonal ng Pilipinas;[3] Spanish: Banco Nacional Filipino;[4] Hokkien Chinese: 菲律賓國家銀行; Pe̍h-ōe-jī: Hui-li̍p-pin Kok-ka Gûn-hâng) is one of the largest banks in the Philippines. It was established by the Philippine government on July 22, 1916, during the American Era.

The bank became the first universal bank in the Philippines in 1980 and was acquired by tycoon Lucio Tan after it was privatized by the government in 1989. After its merger with the Tan-owned Allied Bank on February 9, 2013, PNB became the fifth largest private domestic bank in the country.

To date, PNB has 713 domestic branches and more than 1,400 ATMs. PNB has more than 70 overseas branches, representative offices, remittance centers and subsidiaries across Asia, Europe, the Middle East, and North America.[citation needed]


Philippine National Bank, 50 Centavos (1917). Emergency circulating note for World War I.

Early years

The Philippine National Bank was established as a government-owned banking institution on July 22, 1916. Its primary mandate was to provide financial services to Philippine industry and agriculture and support the government's economic development effort. World War I, then raging in Europe, generated huge demand for the country's major exports, namely sugar, copra, coconut oil, Manila hemp and tobacco. However, not much was being done to develop the industries that produced these sought-after crops since access to credit facilities was limited. To solve this problem, Henderson Martin, vice governor of the Philippines, together with Miguel Cuaderno (who later became Central Bank governor) drafted a charter for a national bank.[citation needed]

On February 4, 1916, Public Act 2612 was passed by the Philippine Legislature providing for the establishment of PNB to replace the small P1 million government-owned Agricultural Bank. PNB's first head office was the Masonic Temple along Escolta, Manila, the "Wall Street of the Philippines" then, in the bustling district of Santa Cruz in Manila. An American, Henry Parker Willis, was its first president.[citation needed]

With PNB's establishment, Filipinos had a bank of their own. PNB was authorized to grant short and long-term loans to agriculture and industry. Filipino farmers then could avail of loans with interest between 8% and 10% per annum. PNB was also authorized to receive deposits, open foreign credits and rediscount bills.[citation needed]

On July 24, 1916, PNB established its first branch outside Manila in Iloilo. In 1917, PNB opened its first non-Philippine branch in New York City, United States. The following year, it established five more domestic branches and another outside the Philippines in Shanghai, China.[citation needed]

As the de facto central bank and national treasury

PNB has also functioned as the de facto central bank of the Philippines until 1949. It was given the special power to issue circulating notes.[citation needed]

PNB briefly ceased operations in January 1942 but reopened the next month under the supervision of Japanese authorities. After the Second World War, PNB reopened immediately and acquired the assets and assumed the liabilities of the banking division of the Bangko Sentral ng Pilipinas.[citation needed]

With the establishment of the Central Bank in 1949, PNB's role as issuer of currency notes, custodianship of bank reserves, sole depository of government funds and clearing house of the banking system ceased.[citation needed]

PNB investments

In 1955, it was authorized to operate as an investment bank with powers to own shares and to issue debentures. In 1963, it established the National Investment and Development Corporation to engage primarily in long-term and equity financing of business ventures.[citation needed]

PNB transferred to its new head office along Escolta in 1966 and launched the first on-line electronic data processing system in the Far East.[citation needed]

Between 1967 and 1979, PNB opened offices in London, Singapore, Jakarta, Honolulu and Amsterdam, and 14 provincial branches. It also started the Dollar Remittance Program.[citation needed]

In 1980, PNB became the first universal bank in the country. However, it encountered difficulties in the mid-80s as a result of the economic downturn triggered by the assassination of Senator Benigno S. Aquino Jr. and in 1986 received assistance from the government.[citation needed]

For a while, the bank was headed by Roberto Benedicto, a classmate of President Ferdinand Marcos and the head of the sugar industry monopoly. He also owned Overseas California Bank in Los Angeles, California, along with Marcos. In 1990, Benedicto agreed to turn over ownership of that bank to the Philippine government in return for criminal racketeering and conspiracy charges against him being dropped. PNB bought the bank for $10 million and merged it into their Century Bank affiliate in Los Angeles.[5][6]


The privatization started in 1989 when 30 per cent of its shares were offered to the public and it was listed on the stock exchange.[citation needed]

In 1992, PNB became the first Philippine bank to reach 100 billion in assets. Later that year, privatization continued with a second public offering of its shares.[citation needed]

In 1995, PNB moved to its headquarters to the PNB Financial Center, Central Boulevard (now Diosdado Macapagal Boulevard), Pasay. In 1996, the Securities and Exchange Commission approved the bank's new Articles of Incorporation and by-laws and the change in the status of PNB from a government-based to a private corporation with the control of the government reduced to 46 per cent.[citation needed]

21st century

A PNB branch in Malate, Manila

In early 2000, the Lucio Tan Group became the single biggest private stockholder. In less than one year, the group pumped nearly P20 billion of fresh capital into the bank. In late 2000, when PNB suffered huge withdrawals, mainly from the government accounts, the government provided P25 billion in financial aid.[citation needed]

In May 2002, the Philippine government and Lucio Tan signed an agreement to swap the government's loans to shares. The accord increased the government's stake to 45 percent from 16 percent and reduced Lucio Tan's holding to 45 percent from 67 percent.[7] Lucio Tan and the government also agreed that year to sell three-quarters of their combined stake within five years.

Also the same year, PNB hired 40-year old Lorenzo V. Tan as its youngest bank president.[8] Following the senior management's Good Bank-Bad Bank strategy, PNB finally posted an income of P52 million (as restated from an earlier reported figure of ₱168 million, due to changes in Generally Accepted Accounting Principles) in 2003, after several years of being in the red. The bank was able to repeat this feat and reported an income of ₱353 million by end-2004.[citation needed]

In August 2005, PNB became fully privatized. The joint sale by the Philippine government and the Lucio Tan Group of the 67% stake in PNB was completed within the third quarter of 2005. The Lucio Tan Group exercised its right to match the ₱43.77 per share bid offered by a competitor and purchased the shares owned by the government. The completion of sale is expected to speed up the development of PNB's franchise and operational competitiveness.[citation needed]

Despite being fully privatized, PNB continued to be a government depository bank until May 3, 2007.[9]

PNB ATMs in Baguio

PNB has remittance centers in the United States, Canada, England, Spain, the Netherlands, France, Germany, Austria, Italy, Hong Kong, Japan, Singapore, Malaysia and in countries in the Middle East.[citation needed]

PNB has also stepped up its marketing efforts to overseas Filipino workers with its PNB Global Filipino Money Card.[10]

Complementing PNB's banking activities are its subsidiaries like PNB General Insurers, a non-life insurance company; PNB Capital, an investment bank; PNB Securities, a stock brokerage outfit; and PNB Forex, which engages in foreign exchange trading. It also has a majority stake in PNB-Japan Leasing Corp. For life insurance requirements of PNB clients, it has a substantial equity stake in Beneficial PNB Life.[citation needed]

Merger with Allied Banking Corporation

Allied Bank Center along Ayala Avenue in Makati is being used as PNB Makati Center, which serves as secondary office of PNB.

On December 7, 2007, the Supreme Court of the Philippines affirmed a judgment dismissing the state's sequestration of Lucio Tan's companies: "There can be no question that indeed, petitioner's (the government's) orders of sequestration are void and have no legal effect." The landmark decision would trigger a planned merger between PNB and Tan's own Allied Banking Corporation. Edgar Bancod, research head, ATR-Kim Eng Securities, stated that the merged bank would become the country's fourth biggest, after Metrobank, Banco de Oro, and Bank of the Philippine Islands.[11][12]

On December 12, 2007, official statements from PNB and Allied Bank confirmed the impending merger of both banks by early 2008.[13] In August 2009, PNB and Allied Bank were expected to complete their merger within the next six to nine months after the latter sells its 28% stake in California-based Oceanic Bank.[14] As of July 7, 2010, the remaining stumbling block to the merger was addressed, as the latter found a buyer for its minority stake in a California-based bank.[15] The move was seen to pave the way for the merger.[16]

On February 9, 2013, the PNB–Allied Bank merger was completed, with Philippine National Bank as the surviving brand. The merged bank became the fourth largest private domestic bank. Tarriela became the chairman and Mier the chief executive of the merged bank.[17] Mier was the chief executive until he retired on May 27, 2014; Mier was replaced by Reynaldo Maclang as the president and CEO.[18] Maclang served as the president and CEO until his retirement on November 15, 2018. Jose "Wick" Veloso became the president and CEO on November 16, 2018[19] until July 5, 2022 when stepped down to head the Government Service Insurance System (GSIS) as appointed by then new president Ferdinand "Bongbong" Marcos Jr. His replacement Florido P. Casuela took office starting April 25, 2023.

Employee unions

In Japan, employees of the Tokyo branch of the PNB are represented by the union Tozen.[20]

See also


  1. ^ "PNB Annual Report 2019" (PDF). Philippine National Bank. Retrieved February 2, 2021.
  2. ^ a b c "PNB Annual Report 2021" (PDF). Philippine National Bank. Retrieved June 24, 2022.
  3. ^ Enaño, Ray S. (April 5, 1990). "PNOC isasapribado". Diyaryo Filipino (in Filipino). Nova Communications, Inc. p. 5. Sinabi ni Estanislao na isasapribado ang PNOC nang katulad din sa Bangko Nasyonal ng Pilipinas (Philippine National Bank, PNB) nang ialok sa publiko ang 30 porsiyento ng mga sapi nito noong nagdaang Mayo.
  4. ^ Concepción, Venancio (1927). "La tragedia" del Banco Nacional Filipino [The "Tragedy" of the Philippine National Bank] (in Spanish). Retrieved March 27, 2021.
  5. ^ Weinstein, Henry; Rempel, William C. (April 22, 1990). "Marcos Crony Agrees to Surrender L.A. Bank: Philippines: In Return, the U.S. Will Drop Charges. Prosecutors Say Firm Was Created to Launder Money". Los Angeles Times. Retrieved June 26, 2022.
  6. ^ "Other News: Two Filipino-Owned Banks Are Merging". Los Angeles Times. May 15, 1992. Retrieved June 26, 2022.
  7. ^ Sayson, Ian C. (April 4, 2005). "Philippine National Bank Chief Resigns". International Herald Tribune. Retrieved September 24, 2008.
  8. ^ Ferriols, Des (April 11, 2002). "Lorenzo Tan Is New PNB Prexy". Retrieved June 26, 2022.
  9. ^ "POST-REHAB INCOME SURGES; ASSET QUALITY FORTIFIED" (PDF). PNB Press Release. Retrieved September 6, 2023.
  10. ^ "Global Filipino Card". Retrieved September 6, 2023.
  11. ^ "Tan SC Victory to Spur Merger Between PNB, Allied Bank". ABS-CBN News Online. December 7, 2008. Archived from the original on July 9, 2007. Retrieved September 24, 2008.
  12. ^ G.R. Nos. 173553-56, PCGG vs. Lucio Tan, First Division, Dec. 7, 2007. Archived from the original on December 10, 2007 – via
  13. ^ Dumlao, Doris (December 7, 2007). "PNB, Allied Bank to Merge in 2008, Says PNB Head". Archived from the original on February 2, 2008. Retrieved September 24, 2008.
  14. ^ "PNB Targets Chinese Remittances". Retrieved August 13, 2009.[permanent dead link]
  15. ^ Dumlao, Doris (July 7, 2010). "Last Obstacle to PNB-Allied Bank Merger Removed". Archived from the original on July 9, 2010. Retrieved July 7, 2010.
  16. ^ "Allied Bank Sells Stake in US-Based Oceanic Bank". Archived from the original on January 14, 2016. Retrieved July 7, 2010.
  17. ^ Philippine National Bank (2013). Customer Advisory (PDF). Archived from the original (PDF) on July 30, 2013. Retrieved February 11, 2013 – via
  18. ^ "PNB Announces President Omar Byron T. Mier's Retirement; Atty. Reynaldo A. Maclang, Current PNB Director, Named as New President". PNB. Retrieved June 24, 2022.
  19. ^ "PNB Announces Maclang's Retirement, Names Veloso as New President". PNB. Retrieved June 24, 2022.
  20. ^ "PNB". Tozen Union. Retrieved June 26, 2022.

Further reading