Bank of the Philippine Islands (BPI) posted a solid start to 2026, with first-quarter net income rising to P16.9 billion, up 1.7 percent year-on-year and 4.9 percent quarter-on-quarter, supported by stronger lending, wider margins, and resilient fee income.
Return on equity improved to 14.3 percent, while return on assets reached 1.9 percent, reflecting steady profitability despite higher costs and provisioning.
Total revenues climbed 13.9 percent to P50.9 billion, anchored by a 13.7 percent increase in net interest income. Growth was driven by an 11.9 percent expansion in average earning assets and a 7-basis point improvement in net interest margin to 4.57 percent, signaling stronger lending spreads.
Non-interest income rose 14.5 percent to P11.8 billion, boosted by credit card fees, forex and trading gains, and higher deal activity, helping diversify earnings beyond traditional lending.
Operating expenses increased 15.8 percent to P23.5 billion, driven by technology upgrades, manpower expansion, and higher transaction volumes. Cost-to-income ratio edged to 46.2 percent, reflecting continued investment in scale and digital capability.
The bank set aside P5.5 billion in provisions for the quarter. Asset quality remained stable, with non-performing loans at 2.42 percent and coverage at 87.15 percent.
BPI’s balance sheet continued to expand. Total assets rose 13 percent to P3.7 trillion, while total loans grew 13.5 percent to P2.6 trillion, supported by broad-based demand. Growth was led by non-institutional segments, which rose 24.9 percent, including Business Banking up 96.3 percent, Credit Cards up 33.3 percent, and Personal Loans up 26.9 percent.
Deposits increased 10.4 percent to P2.8 trillion, keeping the loan-to-deposit ratio at 91.95 percent. Capital remained strong, with a Common Equity Tier 1 ratio of 13.94 percent and a capital adequacy ratio of 14.8 percent.
