Bank of the Philippine Islands (BPI) earned P16.6 billion in net income in the first quarter, up 18.3 percent from the last quarter of the previous year as loan volumes surged.

In a Monday disclosure to the Philippine Stock Exchange, BPI said profit grew by 9 percent compared to the first quarter of 2024.

Gross loans grew by 13.2 percent to P2.3 trillion year-on-year, as the bank attracted 5 million more clients.

BPI head of Consumer Banking Ginbee Go said the growth reflected increasing demand for electric and hybrid vehicle loans, which now account for 7 percent of the total auto loans, up from just 0.5 percent. She said auto loans already amounted to P108 billion.

Thus, net interest income rose by 15.3 percent, leading to a 13.1 percent growth in total revenues at P44.7 billion.

The non-performing loans ratio remained manageable at 2.26 percent. BPI allocated P3 billion in provisions for bad loans as a prudential measure.

BPI executives see resilient loan demand this year as more Filipinos have found jobs, while enterprises strive to re-strategize amid Trump’s tariff threats.

“Exports should be affected. We have to wait and see how the tariffs play out, but we have faith that our economy will be buoyed by domestic consumption,” BPI president and chief executive officer TG Limcaoco said.

“Big data and analytics are key to our growth. we’ve been able to provide lending programs that are more targeted,” Go added.

Non-interest income also grew 6.3 percent to P10.3 billion, driven by higher credit card fees and other service charges.

Deposits increased to P2.6 trillion by 6.3 percent. However, net interest margin improved by 30 basis points (bps) to 4.5 percent as loan-based income surpassed depositor liabilities.

Meanwhile, operating expenses jumped by 12.7 percent due to investments in manpower and technology. Still, the cost-to-income ratio was better by 16 bps.