Insider Spotlight
The Ayala-led bank's latest results mark a reversal from the 5.2-percent earnings growth recorded during the comparable period in 2025, despite continued expansion in lending to businesses and consumers.
What drove the decline
In separate press statements and disclosures to the stock exchange on Oct. 22, 2026, BPI said provisions for potential loan losses jumped 69.2 percent to P19.9 billion from P11.8 billion a year earlier. Although third-quarter provisioning declined 16.5 percent from the preceding quarter, the bank's nonperforming loan ratio increased to 2.50 percent from 2.3 percent a year earlier.
Its nonperforming loan coverage ratio also fell to 89.6 percent from 96.5 percent, indicating a smaller reserve buffer relative to troubled loans.
Operating expenses rose 12.5 percent to P73.7 billion, outpacing the 9.8-percent growth in revenues to P156.3 billion. Its cost-to-income ratio deteriorated to 47.1 percent from 46 percent last year.
The growth engine
Net interest income increased 11 percent to P121.1 billion, supported by growth in earning assets and a net interest margin of 4.6 percent.
Total loans expanded 13.6 percent to P2.7 trillion. Lending to small and medium enterprises surged 46.7 percent, while credit-card and personal loans grew 27.2 percent and 21.7 percent, respectively.
Non-interest income rose 5.8 percent to P35.2 billion, with fee income climbing 15.5 percent on stronger credit-card, wealth-management and insurance activity.
The bigger picture
BPI ended September with P3.9 trillion in assets, up 10.8 percent, and P3 trillion in deposits, an 11-percent increase.
Return on equity slipped to 13.6 percent from 15 percent a year earlier, underscoring how business expansion was not translating into comparable earnings growth.
Its capital adequacy ratio remained at 14.7 percent, above regulatory requirements, while S&P Global Ratings reaffirmed its BBB+ investment-grade credit rating with a stable outlook.
— Edited by Daxim L. Lucas
