BPI Posts ₱32.8B Net Income Amid Rising Costs

The Bank of the Philippine Islands (BPI) reported first-half net income of P32.8 billion, slightly below last year’s P33.0 billion. Strong revenue growth across core businesses helped offset higher operating costs and provisions. The bank delivered a return on equity of 13.8% and return on assets of 1.8%. In June it paid a cash dividend of P2.58 per share, a 24% increase year-on-year.

First-half total revenues rose 12.4% to P104.0 billion, powered by a 12.5% increase in net interest income. This was supported by an 11.3% growth in average earning assets and a 5-basis-point expansion in net interest margin to 4.63%. Non-interest income climbed 12.1% to P24.0 billion, led by an 18.0% gain in fee income from credit cards, investment banking, insurance, and wealth management.

Operating expenses increased by 13.8% to P48.6 billion due to higher manpower, technology, and business volume-related costs, resulting in a cost-to-income ratio of 46.8%. Provisions rose sharply to P13.3 billion, up 84%, as Expected Credit Losses increased amid a weaker macroeconomic outlook. The non-performing loan ratio remained steady quarter-on-quarter at 2.42%, while NPL coverage improved to 92.98%.

Total assets reached P3.7 trillion, up 9.6% year-on-year. Loans grew 12.4% to P2.7 trillion, reflecting broad-based lending momentum: institutional loans rose 8.7%, while non-institutional loans expanded 21.2%, driven by SMEs (+74.5%), credit cards (+28.9%), and personal loans (+21.4%). Deposits increased 9.2% to P2.8 trillion, bringing the loan-to-deposit ratio to 93.6%. Total equity stood at P482.6 billion, up 6.4%, lifting the indicative Common Equity Tier 1 ratio to 14.0% and keeping the Capital Adequacy Ratio steady at 14.8%, both comfortably above regulatory minimums.

In Q2, the bank advanced its digital and inclusion efforts. It became the first Philippine bank to permanently waive InstaPay and PESONet fees for person-to-person interbank transfers via the BPI app, online banking, VYBE by BPI, BanKo, and BizKo. BPI Wealth launched Peso-class versions of the BPI World Tech Feeder Fund and the BPI Global Equity Fund of Funds, available on BPI investment platforms with a P1,000 minimum, allowing investors to access global markets without U.S. dollar accounts. BPI Wealth was also the country’s largest trust institution by assets under management in the first quarter, per Bangko Sentral ng Pilipinas data.

The bank reached a sustainability milestone with 100 branches fully powered by clean energy. Under Agency Banking, as of July 1, 2026, BPI partners with 34 brands and over 7,000 stores, more than 1,300 of which now offer cash deposit and withdrawal services, an increase of over 500 partner stores since last December, extending financial access beyond traditional branches.