Bank of the Philippine Islands (BPI) investor relations material

Executive summary

• First half 2026 performance was flat year-on-year, with record pre-provision operating profit and strong revenue growth, but earnings were tempered by higher provisions due to updated macroeconomic variables in the ECL model.

• Loan growth reached 12.4% year-on-year, with deposits up 9.2%, and customer base expanded to 19.2 million.

• Digital and agency banking initiatives accelerated, with over 7,000 partner stores and significant growth in digital platform usage.

Financial highlights

• Net income for the first half was PHP 32.8 billion, with ROE at 13.8% and annualized ROA at 1.8%.

• Net interest income rose 12.5% to PHP 80 billion, NIM improved to 4.7%, and total revenues increased 12.4% to PHP 104 billion.

• Fee income grew 18% year-on-year, driven by cards, wealth, and insurance, while trading income moderated.

• Operating expenses increased 13.8% to PHP 48.6 billion, mainly due to manpower, technology, and business volume costs.

• Provisions rose 84% to PHP 13.3 billion, reflecting higher ECL reserves.

Outlook and guidance

• Full-year loan growth guidance revised to around 10%, reflecting tighter credit standards and slower consumer demand.

• NIM expected to remain well-supported, with further upside from asset mix shift toward higher-yielding non-institutional loans.

• Credit costs projected to normalize at PHP 5-6 billion per quarter, barring further macro deterioration.

• OPEX growth to remain close to current levels, with ongoing focus on cost-income ratio improvement.