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 but up 7.6% year-over-year, with profitability supported by a full-year ROE of 15.07% and ROA of 2.0%.

• Added 5 million new clients, with digital channels accounting for 52% of new accounts and maintained top NPS rank among banks.

• Continued leadership in digitalization, sustainability, and agency banking, with significant investments in technology and branch transformation.

• Received multiple institutional and ESG awards, including 18 ESG-focused recognitions and certifications for green branches.

Financial highlights

• Full-year revenue reached PHP 170.14 billion, up 23%, with net interest income up 22.3% to PHP 127.59 billion and non-interest income up 25.3% to PHP 42.55 billion.

• Operating expenses rose 21.3% to PHP 83.8 billion due to investments in people, technology, and merger-related costs.

• EPS for 2024 was PHP 11.78, up 12.3% year-over-year.

• Total resources/assets stood at PHP 3.32 trillion, up 14.9% year-on-year; total equity at PHP 430.5 billion.

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

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% or higher; CIR to continue gradual improvement, aiming for another 70 bps reduction.

• Mortgage book expected to grow 10% in 2025, with focus on quality and geographic expansion outside Metro Manila.

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