Bank of Commerce (BankCom), the banking affiliate of diversified San Miguel Corp., sustained its earnings momentum through the first quarter, reporting an unaudited net income of P976.19 million, up 13 percent from P866.79 million a year earlier.
Growth was driven by stronger core lending income and improved client-driven foreign exchange activity amid heightened volatility linked to geopolitical tensions in the Middle East.
The bank’s performance translated into improved profitability metrics, with return on equity rising to 10.74 percent and return on assets at 1.32 percent. Gross revenues increased 10 percent to P3.29 billion, anchored by a 20 percent jump in net interest income to P2.98 billion as expanded lending volumes and higher-yielding assets lifted net interest margin to 4.41 percent.
Other income declined 39 percent year-on-year due to trading losses amid market turbulence, partly offset by gains from ROPA sales and steady FX-related transactions. Operating expenses rose 11 percent to P1.99 billion as BankCom continued investments in manpower, digital systems, and branch expansion, with compensation costs up 15 percent and higher technology amortization.
Despite this, efficiency remained stable with a cost-to-income ratio of 60 percent. Asset quality also improved, with gross non-performing loans easing to 1.21 percent from 1.33 percent and net NPLs down to 0.56 percent, reflecting disciplined credit management.
Total assets reached P306.11 billion, up 7 percent, supported by an 8 percent increase in deposits to P241.88 billion, largely from low-cost CASA accounts. Capital strength remained solid, with a capital adequacy ratio of 16.06 percent, well above regulatory requirements, giving the bank room for continued expansion.
On a sequential basis, net income rose 23 percent from the previous quarter, underscoring sustained operational resilience as BankCom moves further into 2026.
