BPI upbeat on navigating global risks
Ayala-led Bank of the Philippine Islands (BPI) remains confident in its ability to weather global uncertainties as it posted higher first-quarter earnings, backed by strong fundamentals and a growing retail franchise.
At the bank’s annual stockholders’ meeting on Monday, chair Jaime Augusto Zobel de Ayala said BPI is closely watching geopolitical risks, particularly in the Middle East. But he stressed that direct exposure remains limited.
“From a BPI standpoint, our direct exposure is limited. Less than 20 percent of our remittances are from the Middle East. We have no lending or investments in companies based in the region,” Zobel said,
He added that loans to overseas Filipino workers in the region account for only a small portion of the bank’s portfolio.
Despite these risks, Zobel said BPI remains “well-capitalized and highly liquid,” thanks to diversified assets and regular stress testing to withstand external shocks.
“While higher oil prices and softer consumer spending could weigh on certain sectors, we are quite confident in our ability to manage these risks,” he added.
BPI president and CEO Jose Teodoro Limcaoco said the bank’s improving earnings have enabled it to steadily raise dividends while maintaining a prudent stance on capital.
BPI reported a net income of P16.9 billion in the first quarter, up 1.7 percent. This, as loan expansion, wider margins and stronger fee income lifted earnings despite rising costs.
The bank said its earnings rose 4.9 percent from the previous quarter, driven by loan expansion, wider net interest margins and stronger fee-based income.
Total revenues climbed 13.9 percent to P50.9 billion, supported by a 13.7-percent increase in net interest income.
BPI’s dividend payout ratio has stayed within its 35 to 50 percent policy range, hitting 37.1 percent last year.
Dividend per share climbed to P4.36 in 2025 from P1.86 in 2021. That meant a 142-percent increase.
Limcaoco, however, flagged a more uncertain operating environment this year, citing geopolitical tensions and inflation risks.
“It is prudent to take a cautious approach to capital management,” he said. The CEO added that room for higher payouts will depend on how conditions evolve.
The bank’s retail push has emerged as a key growth driver, helping broaden its customer base and strengthen earnings quality.
BPI’s customer base more than doubled to 18.2 million from 8.4 million in 2021.
Non-institutional loans now make up 30.5 percent of its total portfolio, up from 21 percent.
“These retail loans generally earn higher yields,” Limcaoco said. He noted that they have helped offset higher provisioning costs and improve profitability.
BPI said its diversified portfolio, strong capital position and digital-led strategy should allow it to sustain growth.
