Bank of the Philippine Islands (BPI) Q3 2024 earnings summary

Executive summary

• Net income for the first nine months reached a record PHP 48 billion (P47.99 billion), up 24.3% year-on-year, with EPS up 16.5% despite share dilution from the Robinsons Bank merger.

• Third quarter net income hit a record PHP 17.42 billion, up 29.4% year-on-year and 13.8% sequentially, driven by record net interest and fee income, and strong trading profits.

• Return on equity improved to 15.9% and return on assets to 2.07%, both decade highs.

• Total resources reached P3.18 trillion as of September 30, 2024, up 10% from December 31, 2023.

Financial highlights

• Total revenues for the first nine months hit PHP 125.8 billion, up 24.7% year-on-year, with net interest income up 22.2% to PHP 93.85 billion and non-interest income up 32.4% to PHP 31.9 billion.

• Operating expenses increased 22.1% to PHP 59.4 billion, mainly due to manpower, technology, and business volume growth, resulting in a cost-to-income ratio of 47.2%.

• Trading income surged 175.3% to PHP 2.98 billion.

• Provisions for credit losses rose 60% year-on-year to PHP 4.8 billion.

• Pre-provision operating profit was PHP 66.4 billion, up 27.1%.

Outlook and guidance

• Positive outlook for Q4 2024 and 2025, supported by expectations of further BSP rate cuts and improving macro conditions.

• Loan growth expected to remain robust, especially in institutional and consumer segments.

• Dividend payout ratio likely to remain at 40%, implying higher dividends next year due to EPS growth.

• S&P Global Ratings affirmed a BBB+ rating with stable outlook, matching the Philippine sovereign rating.