BANK of the Philippine Islands (BPI) saw its net income increase by 7.8% year on year in the first semester as it saw strong revenue growth despite higher expenses.
The listed bank’s net profit went up to P33 billion in the first half from P30.6 billion in the same period in 2024, it said in a disclosure to the stock exchange on Thursday.
Its financial statement was unavailable as of press time.
BPI’s total revenues rose by 14% year on year to P92.6 billion in the six months ended June.
Broken down, net interest income increased by 16.2% to P71.2 billion, which came on the back of a 8.3% growth in its average earning asset base.
Net interest margin expanded by 32 basis points (bps) to 4.58%, it added.
Non-interest earnings likewise grew by 7.4% to P21.4 billion in the first half, driven by fee income from its credit cards, insurance, and wealth management businesses.
Meanwhile, operating expenses rose by 11.7% to P42.7 billion in the six-month period due to technology and business volume-related costs, as well as manpower structural increases.
Still, BPI’s cost-to-income ratio improved by 96 bps to 46.2% as revenue growth outpaced the increase in its expenses.
The bank also set aside P7.3 billion in provisions in the first half, up by 141.7% from the year-ago level.
Its nonperforming loan (NPL) ratio was at 2.25%, with NPL coverage ratio at 97.1%. “Based on BSP (Bangko Sentral ng Pilipinas) Circular 941, the bank’s NPL coverage ratio translates to 123.8%,” it added, referring to an issuance that amended regulations on past due and nonperforming loans.
BPI’s gross loans expanded by 14.1% year on year to P2.4 trillion at end-June, driven by “strong growth” in non-institutional loans.
On the funding side, total deposits rose by 6.5% to P2.6 trillion from a year ago. Current and savings account or CASA deposits were at P1.6 trillion, up by 2.8% year on year and making up 62.4% of the total.
The bank’s loan-to-deposit ratio was at 90.9%.
BPI’s assets grew by 9.3% year on year to P3.4 trillion as of June.
Total equity was at P453.5 billion, up by 11.5% year on year.
Its common equity Tier 1 (CET1) ratio was at 14.5% and its capital adequacy ratio (CAR) stood at 15.3%, both well above the minimum 6% CET1 ratio and 10% CAR required by the BSP.
BPI’s shares went down by 70 centavos or 0.58% to close at P119 each on Thursday. — Aaron Michael C. Sy
