Banner year: BPI racked up record P66.6-B profit in ’25
Bank of the Philippine Islands (BPI) capped 2025 with a record-high net profit of P66.62 billion, supported by strong revenue growth and sustained loan expansion.
The Ayala-led bank recorded a 7.4-percent increase in net income even as provisioning costs and operating expenses swelled.
In a disclosure on Monday, BPI said its total revenues rose 14.8 percent to P195.3 billion, driven mainly by a 16-percent jump in net interest income to P148 billion.
The bank said the increase was fueled by an 8.5-percent expansion in its average asset base and a 28-basis-point improvement in net interest margin to 4.6 percent.
Noninterest income grew 11 percent to P47.2 billion, lifted by higher fee income from cards, insurance and wealth management, as well as strong trading gains.
On the other hand, operating expenses increased 9.9 percent to P92.1 billion, reflecting higher costs related to business volume, manpower and technology investments. Despite this, BPI’s cost-to-income ratio improved to 47.2 percent, down 209 basis points, on the back of robust revenue growth.
Loan loss provisions
Credit provisions surged to P17.8 billion, up 168.9 percent, although asset quality remained stable.
The bank reported a nonperforming loan (NPL) ratio of 2.18 percent and an NPL coverage ratio of 94.9 percent.
For the year, return on equity stood at 14.5 percent, while return on assets reached 2 percent.
Loan growth remained strong at 14.7 percent to P2.6 trillion.
Institutional loans rose 10.4 percent, while noninstitutional loans jumped 25.8 percent, led by business banking, credit cards and personal loans.
Total assets grew 10 percent to P3.7 trillion, while deposits increased 8.6 percent to P2.8 trillion, of which 60.7 percent consisted of low-cost deposits.
BPI said capital levels stayed well above regulatory requirements, with an indicative common equity tier 1 ratio of 13.9 percent and a capital adequacy ratio of 14.7 percent.
