Bank of the Philippine Islands (BPI) Q2 2026 earnings summary

Executive summary

• Net income for the first half of 2026 was PHP 32.83 billion, supported by record pre-provision operating profit and strong revenue growth, but 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 the 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.

• Asset quality remained stable despite a challenging macroeconomic backdrop, with improved NPL coverage.

• BPI Wealth became the largest trust institution in the country, with AUM over PHP 2.05 trillion and 1.5 million clients.

Financial highlights

• Net interest income for H1 2026 rose 12.5% to PHP 80.03 billion, with NIM improving to 4.63% and total revenues increasing 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 48.63 billion, mainly due to manpower, technology, and business volume costs.

• Provisions rose 84% to PHP 13.34 billion, reflecting higher ECL reserves.

• Book value per share as of June 30, 2026, was PHP 91.11.

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.

• Management expects continued asset and loan growth, with a focus on maintaining asset quality and prudent risk management amid macroeconomic uncertainties.