Bank of the Philippine Islands (BPI) Q4 2024 earnings summary

Executive summary

• Achieved record net income of PHP 62.05 billion for 2024, up 20% year-over-year, driven by strong revenue growth and improved efficiency despite higher operating expenses and provisions.

• Fourth quarter net income was PHP 14.06 billion, down 19.3% sequentially due to higher expenses and lower trading income, but up 7.6% year-over-year.

• Sustained profitability with full-year ROE at 15.07% and ROA at 2.0%.

• Welcomed 5 million new clients in 2024, with 52% onboarded digitally and maintained top NPS rank among banks.

Financial highlights

• Revenue reached PHP 170.1 billion, up 23% year-over-year, with net interest income up 22.3% and non-interest income up 25.3%.

• Fee income grew 24.1%, led by cards, wealth management, and insurance.

• Operating expenses rose 21.3% to PHP 83.8 billion due to investments in people, technology, and marketing.

• Pre-provision income was PHP 86.34 billion, up 24.8%.

• EPS increased 12.3% to PHP 11.78; ROE at 15.07%, ROA at 2%.

Outlook and guidance

• Loan growth guidance for 2025 is 12%.

• NIM expected to remain at or above 4.3% through 2025.

• ROE target to be maintained at 15%+; CIR to continue gradual improvement, aiming for another 70 bps reduction.

• Mortgage book expected to grow 10% in 2025, focusing on high-quality, occupancy-driven loans.

• Credit cost guidance revised to 45-50 bps, with recoveries expected to offset gross NPL formation.

• On track to sustain higher dividends, supported by strong profitability.

• Continued focus on digitalization, customer expansion, and sustainable banking.