Bank of Commerce, the banking arm of San Miguel Corporation, reported record earnings for 2025, marking its third consecutive year of growth since its initial public offering.
In a disclosure to the Philippine Stock Exchange on April 1, the lender said net income rose 17% to ₱3.54 billion for the year ended December 31, 2025, up from ₱3.02 billion in 2024.
The figure nearly doubled the ₱1.8 billion earned in 2022, its debut year on the local bourse. Return on equity climbed to 10.14%, the highest in 16 years, compared to 7.01% during its IPO year.
The strong performance allowed BankCom to declare its first-ever special dividend in July 2025, distributing ₱0.45 per share—a 79% increase from the previous year. Book value per share also grew 12% year-on-year to ₱22.22, underscoring the bank’s strengthening balance sheet.
Core lending operations remained the main driver of growth. Net interest income jumped 18% to ₱10.78 billion, supported by an expansion in loans and receivables. This lifted the net interest margin to 4.35%, its highest since 2009.
Although fourth-quarter net income dipped slightly by 2% to ₱794.79 million compared to the same period in 2024, interest income for the quarter surged 23% year-on-year.
BankCom also reported improved efficiency, with its cost-to-income ratio narrowing to 59% from 62% in 2024, even as it increased spending on human capital and digital infrastructure. IT-related subscription fees more than doubled to ₱229.41 million as the bank modernized its systems.
Total assets grew 8% to ₱286.85 billion, while its loan portfolio expanded 19% to ₱162.82 billion. Asset quality remained stable, with a net non-performing loan ratio of 0.62%.
Positioning for a shifting interest rate environment, the bank boosted its holdings of investment securities at amortized cost to ₱41.37 billion, anticipating further yield declines amid low inflation and possible rate cuts by the Bangko Sentral ng Pilipinas. Capital adequacy stood at 16.48%, comfortably above regulatory requirements.
BankCom also expanded its physical footprint, opening “branch lite” units at Caticlan Airport and Ninoy Aquino International Airport Terminal 3 to capture higher foot traffic and strengthen brand visibility.