The Bank of the Philippine Islands (BPI) capped 2025 with a net income of P66.62 billion, up 7.4 percent from the previous year, supported by strong revenue growth despite higher provisions and operating expenses.

In a disclosure to the Philippine Stock Exchange, the bank said return on equity for the full year stood at 14.5 percent, while return on assets was at 2.0 percent, reflecting sustained profitability.

Total revenues rose 14.8 percent to P195.3 billion, driven mainly by a 16.0 percent increase in net interest income to P148.0 billion. The growth was supported by an 8.5 percent expansion in the average asset base and a 28-basis-point improvement in net interest margin to 4.6 percent.

Non-interest income increased 11.0 percent to P47.2 billion, buoyed by higher fees from cards, insurance, and wealth management, alongside strong trading gains.

Operating expenses climbed 9.9 percent year-on-year to P92.1 billion, reflecting higher volume-related costs, manpower expenses, and continued investments in technology.

Revenues outpace expense increases

Despite this, BPI’s cost-to-income ratio improved to 47.2 percent, down 209 basis points, as revenue growth outpaced expense increases.

The bank booked P17.8 billion in provisions, up 168.9 percent from a year earlier. Asset quality remained stable, with a non-performing loan ratio of 2.18 percent and an NPL coverage ratio of 94.9 percent, which rose to 122.9 percent under BSP Circular 941.

Total loans expanded 14.7 percent to P2.6 trillion, with growth across all portfolios. Institutional loans grew 10.4 percent, while non-institutional loans surged 25.8 percent, led by business banking (up 79.7 percent), credit cards (up 31.9 percent), and personal loans (up 28.3 percent).

Total assets reached P3.7 trillion, up 10.0 percent, while deposits grew 8.6 percent to P2.8 trillion. Current and savings accounts rose to P1.7 trillion, lifting the CASA ratio to 60.7 percent. The loan-to-deposit ratio increased to 92.4 percent.

Total equity ended the year at P476.6 billion, up 10.7 percent, with a Common Equity Tier 1 ratio of 13.9 percent and a capital adequacy ratio of 14.7 percent, both well above regulatory requirements.