BANK of the Philippine Islands (BPI) booked a net income of P48.9 billion for the first nine months of 2026, supported by strong loan growth and fee-based revenues despite increased expenses and loan-loss provisioning.
This translated to a return on equity of 13.6% and return on assets of 1.8%, the lender said in a disclosure to the stock exchange on Thursday.
Its financial statement was unavailable as of press time.
BPI said its revenues in the period rose by 9.8% year on year to P156.4 billion.
Broken down, net interest income grew by 11% to P121.1 billion as of end-September, backed by a 10.7% expansion in its average earning asset base. Net interest margin stood at 4.6%.
Non-interest income also increased by 5.8% to P35.2 billion in the first nine months as fee income climbed by 15.5% driven by higher contributions from its credit cards, wealth management, and insurance businesses.
Meanwhile, the bank’s operating expenses went up by 12.5% year on year to P73.7 billion in the period due to higher manpower, technology, and business volume-related costs.
As a result, its cost-to-income ratio was at 47.1%.
BPI’s provisions surged by 69.2% to P19.9 billion as of end-September in a “prudent” move to cushion its asset quality against potential loan losses. Still, quarter on quarter, provisioning went down by 16.5%.
The bank said its nonperforming loan (NPL) ratio saw a “modest” increase to 2.5% as of September from the end-June level.
“The bank continued to maintain adequate reserves for expected credit losses, resulting in an NPL coverage ratio of 89.6%,” it said.
BPI’s loan book expanded by 13.6% year on year to P2.7 trillion at end-September, supported by sustained lending momentum across all customer segments.
Institutional loans climbed by 11.3% year on year. Meanwhile, non-institutional loans went up by 18.9%, led by small medium enterprise (SME) loans (46.7%), credit cards (27.2%), and personal loans (21.7%).
“Effective Oct. 1, the merger between BPI Direct BanKo, Inc., A Savings Bank (BanKo) and Legazpi Savings Bank, Inc. 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,” BPI said.
On the funding side, total deposits with the bank increased by 11% to P3 trillion.
This resulted in a loan-to-deposit ratio of 92.4%.
BPI’s total assets stood at P3.9 trillion at end-September, up by 10.8% year on year.
Total equity also rose by 2.9% to P488.6 billion.
The bank’s common equity Tier 1 ratio was at 13.9%, while its capital adequacy ratio stood at 14.7%, both above the minimum levels required by the regulator.
LEADERSHIP TRANSITION
Meanwhile, BPI also announced on Thursday that Maria Cristina “Ginbee” L. Go will become the bank’s president and chief executive officer (CEO) effective April 26, 2027 subject to necessary approvals, succeeding Jose Teodoro “TG” K. Limcaoco.
Ms. Go currently heads BPI’s Consumer Banking segment with the rank of executive vice-president.
She has been in BPI for 23 years and previously served as president of its savings arm BPI Family Savings Bank, leading its transformation and eventual integration into the parent bank. She also currenty serves on the boards of Ayala Foundation, TransUnion Philippines, BPI Direct BanKo, and BPI MS Insurance Corp.
As head of BPI’s consumer business, she has helped strengthen their market position by deepening customer relationships, expanding their retail footprint, and strengthening the integration of physical and digital banking capabilities.
Before joining BPI, Ms. Go held leadership positions at Citibank, Ayala Land, and Procter & Gamble.
For his part, Mr. Limcaoco will remain on the bank’s board and take on senior governance roles in other major companies of the Ayala Group, which will be announced separately, BPI said.
Since he took over BPI’s top post in 2021, Mr. Limcaoco helped expand the bank’s reach and strengthened its position as one of the Philippines’ leading financial institutions while advancing financial inclusion through initiatives such as agency banking and digital-first banking solutions.
He led the modernization of the bank’s technology infrastructure, strengthened their cybersecurity and digital capabilities, and also accelerated sustainability initiatives, fostering a culture of innovation, collaboration, and customer-centricity that enabled BPI to deliver record levels of performance while maintaining its commitment to responsible banking and nation-building.
“I believe that leadership transitions provide us with rare opportunities to both look at what has come before, while also embracing the things that have yet to come. As a company with a history of reinvention and longevity, we have always encouraged transitions as a central principle of building enduring institutions. Constant renewal has always enabled us to be relevant to the stakeholders that we serve,” BPI Chairman Jaime Augusto Zobel de Ayala said.
“TG has brought BPI to tremendous new heights as CEO over the past five years, and we are grateful for the strong platform that we will now be building upon. Under his leadership, BPI saw a period of significant transformation across digital, financial inclusivity, and sustainability,” Mr. Zobel said.
“Likewise, I am excited for the new prospects ahead under Ginbee’s stewardship. Amidst some volatility in the global and domestic environment, there are notable opportunities, particularly as the Filipino consumer sector grows, becomes more sophisticated, and seeks a trusted partner in achieving financial stability and success.”
BPI shares dropped by P1.35 or 1.37% to close at P97 apiece on Thursday. — Aaron Michael C. Sy