BPI may match record 2025 profit despite headwinds
Bank of the Philippine Islands (BPI) is confident it can at least match last year’s record earnings despite a tougher operating environment, betting on a stronger second half backed by steady loan growth and resilient demand across core businesses.
BPI president and CEO TG Limcaoco said the bank was aiming to replicate, if not slightly exceed, its 2025 performance, although he acknowledged that economic conditions had become more challenging.
“I think we can match it. We should be able to match it, if not surpass it,” Limcaoco said in an interview on the sidelines of BPI’s 175th anniversary celebration.
“But it is a tougher environment. I don’t think we’ll surpass it by leaps and bounds. But we certainly aim to at least match it,” Limcaoco added.
Chief finance officer Eric Luchangco said the bank was expecting the second half to slightly outperform the first half, following the usual seasonal pattern, although geopolitical tensions had clouded the outlook.
“Typically, we tend to see the second half perform a little better than the first half,” Luchangco said, adding that it was reasonable to expect similar or slightly better performance in the remaining months of the year.
He noted, however, that the conflict in the Middle East had disrupted historical trends, making the outlook less predictable than in previous years.
Despite the uncertainty, BPI’s business units continue to see opportunities.
Luis Cruz, head of commercial banking, said the bank was maintaining its 8 to 10 percent growth target for corporate loans, supported by a healthy pipeline of project finance transactions.
Growth drivers
Power projects continue to post steady expansion, while the bank remains selective in financing real estate developments, particularly within Metro Manila. Outside the capital, however, the bank sees more opportunities for growth.
Consumer banking head Maria Cristina Go said Filipinos were becoming more cautious with their spending, with customers prioritizing essential purchases over discretionary expenses.
Still, BPI continues to grow its loan book across credit cards, housing, auto and motorcycle portfolios, although at a more measured pace than last year.
Go said the bank was seeing encouraging demand in secondary housing, construction and electric vehicle financing, even as higher oil prices and tighter household budgets influenced consumer behavior.
Luchangco also downplayed concerns over the bank’s higher provisions in the second quarter, saying the increase mainly reflected adjustments to expected credit loss models amid the Middle East conflict.
He said the bank does not expect second-quarter provisioning levels to become the norm for the rest of the year, unless macroeconomic conditions worsen further. If conditions improve, some of those provisions could even be reversed, he added.
