Rising provisions dent BPI’s nine-month profit

The Bank of the Philippine Islands (BPI) posted a net income of P48.9 billion in the first nine months of 2026, down about 3.2 percent from the same period last year, as higher revenues were offset by rising operating expenses and provisions for credit losses.

Total revenues rose 9.8 percent year on year to P156.3 billion, according to the bank’s 21 October disclosure.

BPI attributed its nine-month performance to loan growth and higher fee-based revenues, even as provisions for credit losses surged 69.2 percent.

Net interest income grew 11 percent to P121.1 billion, driven by a 10.7 percent increase in average earning assets and a net interest margin of 4.6 percent.

Non-interest income increased 5.8 percent to P35.2 billion, with fee income rising 15.5 percent on higher contributions from credit cards, wealth management and insurance.

Operating expenses climbed 12.5 percent to P73.7 billion, driven by manpower, technology and business volume-related costs. BPI’s cost-to-income ratio stood at 47.1 percent.

P19.9 billion booked in provisions

The bank booked P19.9 billion in provisions, up 69.2 percent from a year earlier, although third-quarter provisioning eased 16.5 percent from the preceding quarter.

BPI’s non-performing loan ratio rose quarter on quarter to 2.5 percent, while its NPL coverage ratio stood at 89.6 percent.

Total assets increased 10.8 percent year on year to P3.9 trillion as of end-September, while total loans expanded 13.6 percent to P2.7 trillion on sustained lending across customer segments.

Institutional loans grew 11.3 percent, while non-institutional loans rose 18.9 percent. Small and medium enterprise loans led growth in the latter segment, surging 46.7 percent, followed by credit card loans, up 27.2 percent, and personal loans, which grew 21.7 percent.

Increase in total deposits

Total deposits increased 11 percent to P3 trillion, with the loan-to-deposit ratio at 92.4 percent. Total equity stood at P488.6 billion, up 2.9 percent year on year.

BPI’s indicative Common Equity Tier 1 ratio was 13.9 percent, while its capital adequacy ratio remained at 14.7 percent, both above regulatory requirements.