Bank of the Philippine Islands (BPI) reported a 7.8% year-on-year increase in net income to P33 billion for the first half of 2025, buoyed by strong loan growth and higher fee-based revenues.
Total revenues climbed 14% to P92.6 billion, with net interest income rising 16.2% to P71.2 billion, driven by an 8.3% expansion in average earning assets and a 32-basis point increase in net interest margin to 4.58%.
Non-interest income rose 7.4% to P21.4 billion, supported by gains in credit cards, insurance, and wealth management businesses.
Operating expenses rose 11.7% to P42.7 billion due to continued investments in technology and higher volume-related and manpower costs. Still, the bank’s cost-to-income ratio improved by 96 basis points to 46.2%, reflecting strong topline performance.
BPI booked P7.3 billion in provisions for the period, a 141.7% surge from a year earlier. Its non-performing loan (NPL) ratio stood at 2.25%, with an NPL coverage ratio of 97.1% or 123.8% under BSP circular 941.
Total assets grew 9.3% to P3.4 trillion, while gross loans expanded 14.1% to P2.4 trillion, led by strong growth across all segments, particularly non-institutional lending. Total deposits rose 6.5% to P2.6 trillion, with a CASA ratio of 62.4% and a loan-to-deposit ratio of 90.9%.
Equity rose 11.5% to P453.5 billion. The bank’s capital ratios remained healthy, with a common equity tier 1 ratio of 14.5% and a capital adequacy ratio of 15.3%, both above regulatory thresholds.
In June, BPI raised P40 billion through the maiden issuance of its “Supporting Inclusion, Nature, and Growth” (SINAG) Bonds, the first tranche of its P200 billion bond program. The peso-denominated fixed-rate bonds have a 1.5-year tenor and carry a 5.85% coupon, payable quarterly.
