BPI earns P33B in H1 2025 as revenues rise 14%, provisions more than double

The Ayala Group’s Bank of the Philippine Islands (BPI) reported a net income of P33 billion for the first half of 2025, up 7.8 percent from a year ago, powered by strong growth in both interest and fee-based revenues.

Total revenues from January to June rose 14 percent to P92.6 billion, led by a 16.2 percent increase in net interest income to P71.2 billion as the bank grew its loan book and widened its net interest margin to 4.58 percent. 

Non-interest income also rose 7.4 percent to P21.4 billion, driven by credit card, insurance, and wealth management fees.

BPI shares, down nearly 3 percent since the start of 2025, shed 0.60 percent to P119 per share. 

Provisions rise with caution

The bank set aside P7.3 billion in loan loss provisions, more than double last year’s level, as part of a more cautious stance amid tighter regulatory guidelines. 

While BPI’s non-performing loan (NPL) ratio remained stable at 2.25 percent, its NPL coverage improved to 123.8 percent based on updated calculations under Bangko Sentral ng Pilipinas (BSP) Circular 941. 

This suggests the increase in provisions was largely regulatory-driven, not due to worsening loan quality.

Managing growth and costs

Operating expenses grew 11.7 percent to P42.7 billion, mainly due to investments in technology, higher business volume, and staffing. 

Even so, the bank’s cost-to-income ratio improved by 96 basis points to 46.2 percent, showing revenues are outpacing expenses. 

Loans expanded 14.1 percent to P2.4 trillion, while deposits grew 6.5 percent to P2.6 trillion, bringing the loan-to-deposit ratio to 90.9 percent.

—Edited by Miguel R. Camus 

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