LT Group Inc., the conglomerate controlled by tycoon Lucio Tan, expects its banking division to drive earnings to another record this year, offsetting the impact of elevated commodity costs and strained consumer spending fueled by geopolitical conflicts in the Middle East.

In a briefing, Lucio Tan III, LT Group president and chief executive officer, said the holding company, which reported a record consolidated attributable net income of ₱30.98 billion in 2025, is anticipating continued profitability in 2026 as its primary units leverage operational efficiencies.

“Overall stability was very key in achieving 2025's figures. Looking forward to 2026, we do expect to also have a very successful net income as well,” Tan told reporters.

Philippine National Bank (PNB), the group’s banking arm, served as the primary growth engine in 2025, contributing ₱14.26 billion, or 46 percent of the conglomerate's total earnings.

PNB benefited from an expansion in loan volumes, higher net interest income, and increased gains from foreign exchange and trading. Tanduay Distillers Inc. also achieved historically high profits, adding ₱3.11 billion to the group.

Tan noted that the record consolidated result was made possible because all key operating subsidiaries performed without major operational setbacks.

For 2026, the LT Group expects PNB to sustain credit growth, though executives are monitoring potential headwinds. High oil prices stemming from global conflicts threaten to weaken the financial capacity of certain borrowers, prompting the group to focus on credit support to prevent a rise in non-performing loans.

Despite these macroeconomic challenges, Tan said the leadership remains optimistic about the bank's ability to expand both its loan portfolio and bottom-line profit.

In the consumer segments, rising global shipping costs have driven up the prices of raw and packaging materials. The conglomerate is implementing cost-mitigation measures and revenue-driving initiatives to shield margins in its beverage and liquor divisions.

To preserve capital amid market volatility, LT Group is maintaining its annual capital expenditure budget at ₱6 billion to ₱8 billion, avoiding major new investment commitments for now.

Jose Gabriel D. Olives, LT Group chief financial officer stated that the company currently possesses sufficient capacity across its major business lines to accommodate organic growth without aggressive expansion.

A key exception is Asia Brewery Inc., which will increase capital spending to expand production lines for its Cobra energy drink to meet demand for its resealable plastic bottle format.