Bank of the Philippine Islands (BPI) Q4 2025 earnings summary

Executive summary

• Achieved record net income of PHP 66.62 billion for 2025, up 7.4% year-over-year, with Q4 net income at PHP 16.13 billion, up 14.7% year-over-year, marking the fourth consecutive year of income growth.

• Total revenues grew 14.8% to PHP 195.28 billion, driven by strong net interest and non-interest income.

• Return on equity at 14.5% and return on assets at 2.0% for the year, reflecting sustained profitability.

• Maintained strong asset quality and capital buffers, with CET1 ratio at 13.9% and CAR at 14.7%.

• Continued digital transformation, branch rationalization, and agency banking expansion, supporting customer growth and operational efficiency.

Financial highlights

• Net interest income rose 16.0% to PHP 148.03 billion, with net interest margin up 28 bps to 4.6%.

• Fee income reached PHP 38.96 billion, up 9.1%, led by cards, wealth management, and insurance.

• Operating expenses rose 9.9% year-over-year to PHP 92.11 billion, mainly from tech, manpower, and marketing, but cost-income ratio improved to 47.2%.

• Provisions for credit losses surged 168.9% to PHP 17.75 billion.

• Pre-provision operating profit (PPOP) increased 19.5% year-over-year to PHP 103.17 billion.

Outlook and guidance

• Loan growth expected in the low teens (12-13%) for 2026, with consumer loans targeted to grow 20-25% and institutional loans 8-9%.

• Credit costs projected at 80-89 bps, lower than Q4 2025, as credit standards tighten.

• NIMs expected to remain stable, balancing rate cuts with a shift to higher-yielding non-institutional loans.

• Dividend payout ratio may increase due to muted loan growth and strong capital position.

• Announced public offering of two-year, PHP 5 billion fixed-rate bonds with a 5.405% annual interest rate.