BPI income up 9% in Q1

MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) started the year strong with a nine percent year-on-year increase in net income to P16.6 billion for the first quarter of 2025, driven by sustained loan growth, solid margins and disciplined cost management.

The listed bank said the improved profitability came on the back of a 13.1 percent growth in revenues, which outpaced the 12.7 percent rise in operating expenses, continuing a positive trend in operating leverage.

This translated to a return on equity of 15.35 percent and a return on assets of 2.05 percent.

BPI president and CEO Jose Teodoro Limcaoco expressed optimism during the bank’s annual stockholders’ meeting and media briefing, noting that the economy’s continued strength and BPI’s solid first quarter suggest the bank is “fairly on track” to exceed its 2024 record earnings of P62.05 billion.

“We reported our first quarter for 2025 earnings of P16.64 billion driven by a very strong net interest income and our growth in revenues,” Limcaoco said.

Total revenues rose 13.1 percent to P44.7 billion, driven by a 15.3 percent increase in net interest income. The bank also reported a 30-basis-point improvement in net interest margin to 4.49 percent.

Non-interest income climbed by 6.3 percent to P10.3 billion, supported by higher credit card fees and transaction-based service charges, which more than made up for lower foreign exchange and trading gains.

Operating expenses grew by 12.7 percent to P20.3 billion, mainly due to higher spending on manpower, technology and volume-related costs. Despite this, the cost-to-income ratio improved slightly to 45.4 percent.

BPI set aside P3 billion in provisions during the quarter. Its non-performing loan (NPL) ratio stood at 2.26 percent, with a coverage ratio of 100.11 percent.

The bank’s total assets reached P3.3 trillion, up by 6.9 percent year-on-year. Gross loans expanded by 13.2 percent to P2.3 trillion, led by strong growth across all portfolios.

Total deposits also inched up by 6.3 percent to P2.6 trillion, bringing the loan-to-deposit ratio to 89.4 percent.

BPI’s equity stood at P448.6 billion, with a common equity Tier 1 ratio of 14.69 percent and capital adequacy ratio of 15.43 percent, both well above regulatory requirements.

In March, BPI raised $800 million from its largest-ever international bond issuance, consisting of $500 million five-year and $300 million ten-year notes.

While acknowledging potential global headwinds, including the possibility of a recession in developed markets, Limcaoco said the Philippines is “better insulated than most,” thanks to strong domestic demand, contained inflation, and a supportive monetary environment.

“We certainly hope this year’s performance will top last year’s. If we stay focused and determined, there is no limit to what we can achieve,” Limcaoco said.