The Bank of the Philippine Islands (BPI) is proceeding with cautious optimism for the rest of 2026 as the Middle East conflict continues to weigh on Filipino consumers.

Speaking at a press briefing following its Annual Stockholders’ Meeting, BPI President and CEO TG Limcaoco said the bank will push forward with its consumer-centric strategy amid heightened economic uncertainty.

“These are times when people have to be cautious, given the situation in the Middle East and the effects that might have on our economy. As BPI, we continue to be very focused on the consumer side,” he said.

“Our focus will remain there, albeit with greater caution, as we assess how the economic situation will evolve and how it will affect both consumers and large corporations,” Limcaoco added.

Inflation rose to 4.1 percent in March, up 1.7 percentage points from the previous month, driven largely by higher fuel and transportation costs. Despite recent rollbacks, fuel prices remain about 60 percent higher than pre-escalation levels. The central bank has also flagged potential spillover effects into other goods and services, with Limcaoco noting the broader impact of rising prices on consumer spending.

“Continued high prices will obviously cut into consumers’ ability to spend. They will have to reallocate spending away from discretionary items toward basics such as transportation,” he said.

“There is also concern that sustained increases in fuel prices could push fertilizer costs higher, which may then affect food prices. Transport costs also rise, creating knock-on effects on other basic goods. That leaves consumers with limited choices,” he added.

“In that environment, we have to be more cautious—by tightening credit standards and strengthening collection efforts. That’s the big picture,” Limcaoco said.

BPI also reported a net income of P16.9 billion for the first quarter of 2026, up 1.7 percent from P16.6 billion a year earlier and 4.9 percent higher than the fourth quarter of 2025. The bank attributed the growth to sustained loan expansion, wider net interest margins, and stronger fee-based income, building on the momentum of its record 2025 performance.

Meanwhile, BPI Head of Consumer Banking Maria Cristina Go outlined potential relief measures the bank is exploring for its roughly 18 million customers as the conflict continues to reshape consumer behavior, drawing parallels with the pandemic period.

“From a collections standpoint, those who are heavily affected by the oil shock are welcome to approach us to request restructuring or repackaging of their loans,” she said.

“On the deposit and investment side, we’ve observed that clients are becoming more focused on day-to-day essentials and prefer liquidity. This means shorter-term placements so they have sufficient cash on hand,” she added, noting that the Bangko Sentral ng Pilipinas (BSP) has rolled out relief measures on consumer loans in response to the energy crisis.

S&P Global has said the BSP’s recent borrower support measures could weigh on bank profitability, although nonperforming loans (NPLs) may decline amid the energy emergency.

BPI reported an NPL ratio of 2.42 percent for the first quarter—below the industry average of 3 to 4 percent—which Limcaoco expects to rise in the near term.

“Because we are more focused on the consumer book, you’ll see that rise—likely more than peers. But our margins in the consumer segment are also wider,” he said.

“What we want is to lend to people who can use credit to improve their lives. We know that comes with risk—but it’s manageable,” Limcaoco added.