Bank of the Philippine Islands (BPI) reported first-half net income of PHP 32.8 billion, down 0.4% from a year earlier, in a disclosure to the stock exchange on 16 July.

Sharply higher provisions for expected credit losses outweighed double-digit revenue growth despite sustained lending momentum.

Total revenues rose 12.4% year-on-year to PHP 104 billion, supported by a 12.5% increase in net interest income as average earning assets expanded 11.3% and net interest margin widened five basis points to 4.63%.

Non-interest income increased 12.1% to PHP 24 billion, led by an 18% rise in fees from credit cards, investment banking, insurance, and wealth management.

Operating expenses increased 13.8% to PHP 48.6 billion, reflecting higher manpower, technology, and business volume-related costs, resulting in a cost-to-income ratio of 46.8%.

Provisions jumped 84% to PHP 13.3 billion as expected credit losses rose amid a weaker macroeconomic outlook.

The non-performing loan ratio held flat quarter-on-quarter at 2.42%, while the coverage ratio improved to 92.98%.

Total assets grew 9.6% to PHP 3.7 trillion, while loans expanded 12.4% to PHP 2.7 trillion.

Institutional loans rose 8.7%, while non-institutional lending increased 21.2%, driven by small and medium enterprises, credit cards, and personal loans.

Deposits climbed 9.2% to PHP 2.8 trillion, with the loan-to-deposit ratio reaching 93.6%.

Total equity increased 6.4% to PHP 482.6 billion, lifting the indicative Common Equity Tier 1 ratio to 14%, while its capital adequacy ratio remained at 14.8%, both above regulatory requirements.

Digital Integration Milestones

The results come as BPI completes a broader digital consolidation.

Effective 1 July 2026, Robinsons Bank’s digital banking and customer service channels were fully folded into BPI’s own platforms, completing the integration that followed BPI’s 2024 merger with Robinsons Bank.

BPI has also made interbank fund transfers permanently free across its mobile app, online banking, and its VYBE, BanKo, and BizKo platforms, part of a financial inclusion push marking the bank’s 175th anniversary.

BPI’s Q1 2026 investor materials separately cited AI integration into its digitalisation strategy and continued growth in agency banking as drivers behind its expanding customer base, which reached 18.7 million as of the first quarter.

Featured image: Edited by Fintech News Philippines based on an image by Aerous via Wikimedia Commons.