Bank of the Philippine Islands (BPI) investor relations material

Executive summary

• 9M26 net income was P48.90bn, down 3.1% YoY as revenue growth and robust lending were offset by higher provisions and operating expenses; 3Q26 net income rose 1.0% QoQ to P16.07bn.

• Loans and deposits grew 13.6% and 11.0% YoY, respectively; customer count reached 19.8mn.

Financial highlights

• 9M26 net revenues rose 9.8% YoY to P156.28bn; net interest income increased 11.0% to P121.09bn and fee income rose 15.5% to P32.45bn.

• PPOP reached a record P82.61bn, up 7.5% YoY; operating expenses increased 12.5% to P73.68bn.

• Provisions rose 69.2% YoY to P19.88bn; NIBT declined 3.6% to P62.73bn, while income taxes fell 5.2% to P13.61bn.

• Q3 net interest income increased 0.4% QoQ to PHP 41B; expenses were just over PHP 25B, down 0.4% QoQ, and provisions fell 16.5% to PHP 6.5B.

• Trading income fell 46.8% YoY to P2.75bn amid rising yields.

Outlook and guidance

• Indicative 2027 planning assumes credit costs near 100 bps, loan growth near 10% and asset growth at a similar level; management stressed flexibility amid volatility.

• Further rate increases are expected to support NIM over time, but deposits reprice before loans; management assesses rate impacts over a one-year period.

• Rates may turn in H2 next year; funding plans favor shorter tenors in the interim.

• SME lending growth is being restrained; business banking cited low-20s YoY growth by year-end, while the CEO cited 13% if the book stays flat through year-end.