BPI H1 2026 net income slightly down on higher opex, provisions

Ayala-led Bank of the Philippine Islands (BPI) reported Thursday a slight decline in its first-half earnings, as the lender posted higher operating expenses and provisions during the period.

Net income for the six-month period fell by 0.4% to P32.8 billion from P33 billion a year ago, as revenues grew 12.4% to P104 billion, with net interest income up 12.5%.

Non-interest income increased by 12.1% to P24.0 billion as fee income growth stood at 18%, with higher contributions from credit cards, investment banking, insurance, and wealth management.

Operating expenses climbed 13.8% to P48.6 billion as the bank reported higher manpower, technology, and business volume-related costs, bringing the cost-to-income ratio to 46.8%.

Provisions for the semester increased 84% to P13.3 billion, as expected credit losses rose amid deteriorating macroeconomic conditions and outlook. The ratio of non-performing loans (NPL) was flat at 2.42%, with the coverage ratio up to 92.98%.

The bank ended the period with P3.7 trillion in assets, up 9.6% from last year. Total loans grew 12.4% to P2.7 billion.

BPI president and chief executive officer Jose Teodoro "TG" Limcaoco in January said the bank is looking to reach high single-digit growth in its net income and mid-teens in its loans this year, with a push on consumer loans.

Economic growth slowed to 2.8% in the first quarter of the year—the slowest footing since the 3.8% during the COVID-19 pandemic lockdowns in the first quarter of 2021—due to the impact of the Middle East war and the lasting effect of the flood control corruption scandal on spending.

Economy and Planning Secretary Arsenio Balisacan said second-quarter growth was still likely hit by overseas concerns, as this was the peak of the conflict between the United States and Iran. The growth target has also been revised to 3.5% to 4.5%, from the previous range of 5% to 6%. — VDV, GMA News