The Bank of the Philippine Islands (BPI) reported net income of P48.9 billion for the first nine months of the year, driven by solid loan growth, rising fee revenues, and steady business activity across core segments. Returns stood at 13.6 percent for return on equity and 1.8 percent for return on assets, with earnings tempered by ongoing investments in people, technology, network expansion, and prudent credit provisioning.
Total revenues reached P156.3 billion, up 9.8 percent year-on-year. Net interest income rose 11 percent to P121.1 billion, supported by a 10.7 percent expansion in average earning assets and a steady net interest margin of 4.6 percent. Non-interest income grew 5.8 percent to P35.2 billion, lifted by a 15.5 percent jump in fee earnings from credit cards, wealth management, and insurance services. Operating expenses climbed 12.5 percent to P73.7 billion, bringing the cost-to-income ratio to 47.1 percent.
Provisions totalled P19.9 billion, 69.2 percent higher year-on-year, though the third quarter saw a 16.5 percent decline from the previous three months. The non-performing loan ratio edged up to 2.5 percent quarter-on-quarter, while the bank maintained strong loss reserves, translating to an NPL coverage ratio of 89.6 percent.
BPI’s total assets reached P3.9 trillion, up 10.8 percent from a year earlier. Total loans grew 13.6 percent to P2.7 trillion, with particularly strong growth in SME lending at 46.7 percent, credit cards at 27.2 percent and personal loans at 21.7 percent. Deposits rose 11 percent to P3.0 trillion, producing a loan-to-deposit ratio of 92.4 percent. Capital levels remained well above regulatory standards, with a Common Equity Tier 1 ratio of 13.9 percent and a capital adequacy ratio of 14.7 percent.
Beyond financial results, BPI secured a BBB+ credit rating with stable outlook from S&P Global Ratings, matching the Philippine sovereign rating. It became the country’s first universal bank to earn dual ISO certifications for information security and privacy management, and integrated National ID verification into its mobile app to streamline account openings. Effective October 1, BPI Direct BanKo completed its merger with Legazpi Savings Bank to expand reach in microfinance and teacher lending. The bank also received multiple industry honours, including Philippines’ Best Managed Bank and Best Bank CEO for president and CEO TG Limcaoco from the Asian Banker.
