Bank of the Philippine Islands (PSE: BPI) ended 2025 with a 7.4% increase in net income to ₱66.62 billion, driven by strong loan expansion and solid revenue growth, even as the bank sharply increased provisions and operating expenses.
The Ayala-led lender reported a Return on Equity (ROE) of 14.5% and Return on Assets (ROA) of 2.0%, signaling sustained profitability amid a tighter credit and cost environment.
Earnings performance and balance sheet strength
Total revenues rose 14.8% year-on-year to ₱195.3 billion, anchored by a 16.0% jump in net interest income to ₱148.0 billion. This was supported by an 8.5% expansion in average earning assets and a 28-basis-point widening in net interest margin to 4.6%, reflecting improved asset yields in a higher-rate environment.
Non-interest income increased 11.0% to ₱47.2 billion, mainly from card fees, insurance, wealth management, and trading gains.
Operating expenses climbed 9.9% to ₱92.1 billion, driven by higher manpower costs, business volume-related expenses, and continued investments in technology. Despite this, BPI improved efficiency, with its cost-to-income ratio declining to 47.2%, down 209 basis points year-on-year—evidence that revenue growth more than compensated for rising costs.
BPI set aside ₱17.8 billion in loan loss provisions, a 168.9% increase from the previous year. This aggressive provisioning weighed on earnings growth but strengthened balance sheet buffers.
Despite the higher provisions, asset quality indicators remained controlled:
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Non-performing loan (NPL) ratio: 2.18%
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NPL coverage ratio: 94.9%
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NPL coverage under BSP Circular 941: 122.9%
Total loans grew 14.7% to ₱2.6 trillion, with growth across all portfolios.
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Institutional loans: +10.4%
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Non-institutional loans: +25.8%
Retail and small business lending drove the expansion:
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Business Banking: +79.7%
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Credit Cards: +31.9%
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Personal Loans: +28.3%
As of end-2025:
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Total assets: ₱3.7 trillion (+10.0%)
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Total deposits: ₱2.8 trillion (+8.6%)
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CASA deposits: ₱1.7 trillion (CASA ratio of 60.7%)
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Loan-to-deposit ratio: 92.4%
Capitalization remained well above regulatory minimums:
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Common Equity Tier 1 ratio: 13.9%
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Capital Adequacy Ratio: 14.7%
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Total equity: ₱476.6 billion (+10.7%)
Bonds, funding, and 2026 outlook
BPI also announced the public offering of its ₱5 billion, two-year peso-denominated fixed-rate SIGLA Bonds, with an option to upsize. The bonds carry an interest rate of 5.405% per annum and are expected to be issued and listed on the Philippine Dealing & Exchange Corp. on February 13, 2026.
The offer period runs from January 26 to February 4, based on the bank’s disclosures, with subsequent clarification indicating issuance and listing in February 2026.
BPI’s 2025 performance shows a bank willing to trade short-term margin pressure for long-term growth. Strong loan expansion—particularly in consumer and business banking—powered revenue gains, while higher provisions reflect a more conservative stance on credit risk.
With solid capitalization, improving efficiency, and a growing retail footprint, BPI enters 2026 financially strong, but with earnings momentum increasingly tied to credit demand and asset quality discipline.
The BPI Supporting Individuals Grow, Lead, and Achieve Bonds (SIGLA Bonds) are a ₱5 billion Philippine Peso-denominated fixed-rate bond under BPI’s ₱200 billion Bond and Commercial Paper Program approved in October 2024. The bonds carry the “ASEAN Social Bond” label, affirmed by the SEC in December 2025, ensuring that net proceeds fund eligible social projects under BPI’s Sustainable Funding Framework.
Key terms:
- Tenor: 2 years, maturing in 2028
- Interest rate: 5.405% per annum, fixed
- Minimum investment: ₱500,000, increments of ₱100,000
- Issue and listing: Expected February 13, 2026, on the Philippine Dealing & Exchange Corp. (PDEx)
- Joint Lead Arrangers and Selling Agents: BPI Capital Corporation and ING Bank N.V., Manila Branch