Bank of the Philippine Islands, the banking unit of the Ayala Group, kept its earnings largely intact in the first half of 2026 as solid loan growth and stronger fee income offset a sharp rise in provisions for potential credit losses.
The country’s second-largest lender reported net income of P32.8 billion, down just 0.4 percent from P33 billion a year earlier. The performance was backed by double-digit revenue growth even as the bank set aside significantly more reserves to cushion against a weaker macroeconomic outlook.
Total revenues climbed 12.4 percent to P104 billion. Net interest income rose 12.5 percent as the bank expanded its earning asset base and slightly widened its net interest margin to 4.63 percent.
Fee-based businesses also delivered. Non-interest income increased 12.1 percent to P24 billion on stronger contributions from credit cards, investment banking, insurance, and wealth management.
The higher income was partly offset by higher costs. Operating expenses grew 13.8 percent to P48.6 billion as BPI invested more in technology, manpower, and business expansion.
The bank also took a more cautious stance on credit risk. Provisions jumped 84 percent to P13.3 billion as expected credit losses increased. Despite the higher provisioning, asset quality remained stable with the non-performing loan ratio unchanged at 2.42 percent, while loan loss coverage improved to nearly 93 percent.
BPI’s balance sheet continued to expand. Total assets rose 9.6 percent to P3.7 trillion while loans grew 12.4 percent to P2.7 trillion. Consumer lending led the charge with SME loans surging 74.5 percent, credit card loans rising 28.9 percent, and personal loans increasing 21.4 percent. Deposits climbed 9.2 percent to P2.8 trillion, keeping capital levels comfortably above regulatory requirements.
The bank also stepped up its digital push by permanently waiving InstaPay and PESONet transfer fees across its platforms, expanding its agency banking network to more than 7,000 partner stores, and broadening access to global investment products through peso-denominated funds.
BPI rewarded shareholders with a 24 percent increase in cash dividends to P2.58 per share, underscoring the bank’s ability to generate steady returns despite a more challenging operating environment.
