MAKATI CITY, Philippines — The Bank of the Philippine Islands (“BPI” or the “Bank”) posted a net income of P48.9 billion in the first nine months of the year, supported by robust loan growth, higher fee-based revenues, and healthy business activity across its key segments. Continued investments in manpower, technology, and franchise expansion, together with prudent provisioning tempered earnings during the period. Return on equity (ROE) was 13.6% and return on assets (ROA) was 1.8%.
Total revenues for the first nine months reached P156.3 billion, up 9.8% year-on-year. Net interest income increased by 11.0% to P121.1 billion, driven by a 10.7% increase in the average earning asset base and a resilient net interest margin of 4.6%. Non-interest income grew to P35.2 billion, up 5.8%, bolstered by strong fee income, up 15.5% on higher contributions from credit cards, wealth management and insurance.
Operating expenses increased 12.5% year-on-year to P73.7 billion, driven by manpower, technology, and business volume-related costs, leading to a cost-to-income ratio of 47.1%.
The Bank booked provisions of P19.9 billion, up 69.2% from the previous year, while third quarter provisioning eased 16.5% from the preceding quarter. Asset quality saw modest changes with the NPL ratio rising quarter-on-quarter to 2.50%. The Bank continued to maintain adequate reserves for Expected Credit Losses, resulting in an NPL coverage ratio of 89.6%.
Total assets stood at P3.9 trillion, up 10.8% year-on-year. Total loans expanded 13.6% year-on-year to P2.7 trillion on sustained lending momentum across all customer segments. Institutional loans rose by 11.3%, while non-institutional loans expanded by 18.9%, led by SME, up 46.7%, Credit Cards, up 27.2%, and Personal Loans, up 21.7%. Total deposits grew 11.0% year-on-year to P3.0 trillion, with the Loan-to-Deposit Ratio at 92.4%. Total equity stood at P488.6 billion, up 2.9% year-on-year, with an indicative Common Equity Tier 1 Ratio of 13.9% while the Capital Adequacy Ratio remained stable at 14.7%. Both are well above regulatory requirements.
Beyond its financial performance, BPI continued to strengthen its franchise during the period. In September, S&P Global Ratings affirmed the Bank’s BBB+ credit rating with a stable outlook, at par with the Philippine sovereign rating. BPI became the first universal bank in the country to achieve dual ISO certifications on information technology (ISO/IEC 27001:2022) and privacy management (ISO/IEC 27701:2019), reinforcing its commitment to data privacy and consumer trust. Further enhancing customer experience, the Bank integrated National ID eVerify into the BPI app, enabling customers to open an account through a seamless digital onboarding process.
Effective 1 October 2026, the merger between BPI Direct BanKo, Inc., A Savings Bank (BanKo) and Legazpi Savings Bank, Inc. (LSB) took effect, with BanKo as the surviving entity. This reinforces the Bank’s strategy to deepen its presence in the microfinance and teachers’ loans segments. Through this merger, the Bank expects to strengthen its capital efficiency, improve operational resilience, and enhance client experience.
The Bank was recognized as the Philippines’ Best Managed Bank, with BPI President and CEO TG Limcaoco receiving the Best Bank CEO award from the Asian Banker. The same institution recognized BPI as Best Retail Bank and Best SME Bank in the Philippines, alongside other industry recognitions, affirming the Bank’s commitment to #DoMore for the Philippines.