BPI reports higher nine-month profit as loans and fees lift 2026 earnings

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BPI nine-month profit 2026

Highlights

BPI's nine-month net profit rises to P48.9 billion with a 13.6% ROE, driven by a 9.8% revenue increase to P156.4 billion and a 13.6% loan book expansion to P2.7 trillion.
Non-interest income grows 5.8% to P35.2 billion and fee income surges 15.5%, supported by strong credit card, wealth management, and insurance segments.
Provisions climb 69.2% to P19.9 billion amid a higher 2.5% nonperforming loan ratio, while merger of BanKo and Legazpi Savings Bank completes October 1 to boost microfinance exposure.

Revenue growth and balance sheet expansion

As reported by BusinessWorld Online, BPI says its nine-month net profit reaches P48.9 billion, translating to a return on equity of 13.6% and a return on assets of 1.8%. The bank says revenue in the period rises 9.8% year on year to P156.4 billion, led by an 11% increase in net interest income to P121.1 billion as of end-September, supported by a 10.7% expansion in its average earning asset base.

Net interest margin stands at 4.6%, while non-interest income increases 5.8% to P35.2 billion. Fee income climbs 15.5%, driven by higher contributions from its credit card, wealth management and insurance businesses.

BPI says its loan book expands 13.6% year on year to P2.7 trillion at end-September, supported by sustained lending momentum across customer segments. Institutional loans rise 11.3%, while non-institutional loans grow 18.9%, led by SME loans at 46.7%, credit cards at 27.2% and personal loans at 21.7%.

On the funding side, total deposits increase 11% to P3 trillion, resulting in a loan-to-deposit ratio of 92.4%. Total assets stand at P3.9 trillion, up 10.8% year on year, while total equity rises 2.9% to P488.6 billion.

Provisioning, costs and capital position

Operating expenses increase 12.5% year on year to P73.7 billion during the period, reflecting higher manpower, technology and business volume-related costs. As a result, the bank's cost-to-income ratio stands at 47.1%.

BPI says provisions surge 69.2% to P19.9 billion as of end-September in what it describes as a prudent move to cushion asset quality against potential loan losses, although provisioning declines 16.5% quarter on quarter. Its nonperforming loan ratio posts a modest increase to 2.5% as of September from the end-June level, while the NPL coverage ratio stands at 89.6%.

The bank also says the merger between BPI Direct BanKo, Inc., A Savings Bank and Legazpi Savings Bank, Inc. takes effect on Oct. 1, with BanKo as the surviving entity. It says the transaction supports its strategy to deepen its presence in the microfinance and teachers' loans segments, while strengthening capital efficiency, operational resilience and client experience.

BPI's common equity Tier 1 ratio stands at 13.9%, while its capital adequacy ratio is at 14.7%, both above the regulator's minimum requirements. Its financial statement is unavailable as of press time.

In our earlier article on planned Philippine sovereign bond reforms and the country’s bid for inclusion in J.P. Morgan’s Government Bond Index-Emerging Markets, we explained how changes to peso government bond pricing and benchmark access could broaden the investor base and improve liquidity. We also noted that lower funding costs and stronger capital inflows are not automatic, and that deeper corporate capital markets and wider structural reforms are needed so financing improvements translate into real investment and productivity gains.

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