Bank of Commerce (BankCom) posted a 13-percent increase in first-quarter net income, sustaining momentum from its record earnings performance in 2025 despite volatility linked to geopolitical tensions in the Middle East.

In Wednesday disclosure, the San Miguel Corp-affiliated lender reported net income of P976.19 million as of end-March 2026, up from P866.79 million in the same period last year.

The bank said the stronger performance was driven mainly by resilient core revenues, particularly higher net interest income and gains from foreign exchange transactions.

Net interest income climbed 20 percent to P2.98 billion from P2.49 billion a year earlier, supported by growth in loans, receivables and other interest-earning assets. Net interest margin improved to 4.41 percent from 4.35 percent at end-2025.

Gross revenues rose 10 percent to P3.29 billion.

However, market volatility tied to geopolitical developments in the Middle East weighed on trading operations, pulling other income down 39 percent year-on-year to P304.51 million.

The bank said decline was attributed mainly to trading losses arising from market fluctuations, although this was partially offset by gains from client-related foreign exchange transactions and sales of real and other properties acquired.

Operating expenses excluding provisions increased 11 percent to P1.99 billion as the bank continued investing in technology, branch expansion and manpower to support growth.

Compensation expenses rose 15 percent to P818.15 million due to workforce expansion and retention initiatives, while taxes and licenses climbed 9 percent to P349.51 million.

Asset quality remained stable, with the gross non-performing loan ratio improving to 1.21 percent from 1.33 percent at end-2025. Net non-performing loans eased to 0.56 percent from 0.62 percent.

Total loans and receivables reached P162.81 billion, accounting for 53 percent of total assets, while deposits increased 8 percent to P241.88 billion.

BankCom’s total assets grew 7 percent year-on-year to P306.11 billion, while its capital adequacy ratio stood at 16.06 percent, comfortably above the Bangko Sentral ng Pilipinas’ regulatory minimum.

The latest performance follows BankCom’s record earnings in 2025, when the bank posted its highest-ever annual net income driven by strong lending growth, higher margins and improved operating efficiency.