The Bank of the Philippine Islands (BPI) reported a net income of P32.8 billion in the first half of 2026, nearly unchanged from the P33 billion earned over the same period a year earlier, as strong revenue growth was offset by higher operating expenses and a sharp increase in provisions.

The Ayala-led lender said in a Thursday morning disclosure that it posted a return on equity of 13.8 percent and a return on assets of 1.8 percent for the six-month period. In June, BPI distributed cash dividends of P2.58 per share, up 24 percent from a year earlier.

Total revenues rose 12.4 percent to P104 billion, supported by sustained growth across the bank’s core businesses. Net interest income increased 12.5 percent, driven by an 11.3 percent expansion in average earning assets and a five-basis-point improvement in net interest margin to 4.63 percent.

Non-interest income climbed 12.1 percent to P24 billion, led by an 18 percent increase in fee-based revenues. Stronger contributions from the bank’s credit card, investment banking, insurance and wealth management businesses boosted overall earnings.

Operating expenses increased 13.8 percent to P48.6 billion due to higher manpower costs, increased technology investments and expenses related to growing business volumes. The bank’s cost-to-income ratio stood at 46.8 percent.

BPI booked provisions of P13.3 billion during the period, up 84 percent from a year ago, as expected credit losses increased amid a weaker economic outlook. Despite the higher provisions, asset quality remained stable, with the non-performing loan ratio unchanged quarter-on-quarter at 2.42 percent and the NPL coverage ratio improving to 92.98 percent.

Total assets expanded 9.6 percent to P3.7 trillion, while loans grew 12.4 percent to P2.7 trillion. Institutional loans increased 8.7 percent, while non-institutional loans rose 21.2 percent. The bank’s small and medium enterprise portfolio surged 74.5 percent, while credit card receivables and personal loans grew 28.9 percent and 21.4 percent, respectively.

Deposits increased 9.2 percent to P2.8 trillion, resulting in a loan-to-deposit ratio of 93.6 percent. Total equity rose 6.4 percent to P482.6 billion. BPI’s Common Equity Tier 1 ratio improved to 14 percent, while its Capital Adequacy Ratio remained stable at 14.8 percent, both well above regulatory requirements.

The bank also continued expanding its digital banking, wealth management, sustainability and agency banking initiatives, including the permanent waiver of InstaPay and PESONet fees – the first private financial institution to do so – as well as new international investment fund offerings, and the expansion of its partner banking network to more than 7,000 stores nationwide.