BankCom aims to sustain high margins
San Miguel Corp.-led Bank of Commerce (BankCom) expects its margins to remain above last year’s level despite anticipated pressure in the second half, as the bank keeps a cautious stance amid heightened market volatility.
BankCom head of investor relations officer Robby Gaerlan said on Tuesday its net interest margin (NIM) had improved to 4.68 percent from 4.35 percent at the end of 2025, even as the bank deliberately trimmed its balance sheet.
The latest NIM was the bank’s highest since its acquisition by San Miguel.
“While the bank expects some pressures in the second half, particularly from funding cost adjustments and evolving rate conditions, we remain confident that full-year margins can be sustained above last year’s levels,” the bank said.
Disciplined pricing, balance sheet management and liquidity management would be key to sustaining its NIM, the bank said.
Gaerlan attributed the recent balance sheet compression to a deliberate move to take a more defensive position amid elevated market volatility stemming from geopolitical tensions in the Middle East.
The strategy involved downsizing some financial assets to strengthen liquidity position and maintain higher buffers.
This resulted in a slight contraction in its loan book and a reduction in its investment portfolios. Still, the more cautious positioning helped improve its interest margin.
Meanwhile, BankCom is expanding its physical network through branch-lite units (BLUs), which allow the lender to enter new markets faster and at a lower cost than full-service branches.
The BLUs will complement traditional branches under a hub-and-spoke model.
