Bank of the Philippine Islands (BPI) recorded nearly flat earnings for the first six months of 2026, as a heavy spike in credit buffers offset solid gains in its lending and fee-generating services.
According to its regulatory disclosure to the Philippine Stock Exchange, the Ayala-controlled banking giant booked a net income of ₱32.8 billion for the January-to-June period. This represents a slight dip from the ₱33 billion registered in the same timeframe last year.
Rising operational costs and a dramatic 84% surge in provisions dragged down the bank’s bottom line. BPI allocated ₱13.3 billion for potential credit losses to cushion against macroeconomic challenges. Despite this preemptive move, credit quality remained healthy, with the non-performing loan (NPL) ratio holding steady at 2.42%, while the NPL coverage ratio improved to 92.98%.
Total revenues grew 12.4% year-on-year to reach ₱104 billion, bolstered by strong interest-based income. Net interest income jumped 12.5% on the back of an 11.3% growth in average earning assets, alongside a five-basis-point expansion in net interest margin to 4.63%.
Meanwhile, non-interest earnings gained 12.1% to touch ₱24 billion. Within this segment, fee-based revenues climbed 18%, driven by robust transactions in credit cards, wealth management, insurance, and investment banking. However, operating expenses rose 13.8% to ₱48.6 billion as BPI funded technological upgrades, workforce growth, and other business needs, bringing its cost-to-income ratio to 46.8%.
For the first half, BPI recorded a return on equity of 13.8% and a return on assets of 1.8%.
The lender’s balance sheet continued its upward trajectory, with total assets rising 9.6% to ₱3.7 trillion. Its total loan book expanded 12.4% to ₱2.7 trillion, led by a 74.5% surge in small and medium enterprise (SME) loans, a 28.9% increase in credit cards, and a 21.4% rise in personal loans. Institutional lending ticked up by 8.7%, while non-institutional loans jumped 21.2%.
On the funding side, total deposits grew 9.2% to ₱2.8 trillion, resulting in a loan-to-deposit ratio of 93.6%. Capitalization remained robust, with shareholders’ equity reaching ₱482.6 billion—up 6.4% year-on-year—and the bank’s Common Equity Tier 1 (CET1) and capital adequacy ratios standing at 14% and 14.8%, respectively.
Key operational milestones in the second quarter included BPI becoming the first local bank to permanently waive fees for InstaPay and PESONet transfers on personal accounts.
Additionally, BPI Wealth rolled out new peso-denominated shares for selected global technology and equity feeder funds. The lender also distributed cash dividends of ₱2.58 per share in June, marking a 24% year-on-year increase.