The Bank of the Philippine Islands (BPI or the “Bank”) reported a net income of ₱16.6 billion for the first quarter of 2025, marking a 9.0% increase from ₱15.3 billion in the same period last year, and an 18.3% rise quarter-on-quarter. The Bank credited the solid performance to strong revenue growth, which offset higher operating expenses and provisions for credit losses.
This resulted in a return on equity (ROE) of 15.35% and a return on assets (ROA) of 2.05%.
Total revenues reached ₱44.7 billion, up 13.1% year-on-year, driven by a 15.3% increase in net interest income. This was supported by an 8.6% expansion in average earning assets and a 30-basis-point improvement in net interest margin to 4.49%. Non-interest income rose 6.3% to ₱10.3 billion, mainly due to higher credit card fees and transaction-based service charges, which helped offset declines in foreign exchange and trading income.
Operating expenses amounted to ₱20.3 billion, a 12.7% increase year-on-year, primarily driven by investments in manpower, technology, and volume-related business expenses. Despite the rise in costs, the Bank’s cost-to-income ratio improved by 16 basis points to 45.4%.
Provisions for credit losses totaled ₱3.0 billion for the quarter. The non-performing loan (NPL) ratio stood at 2.26%, while the NPL coverage ratio was at 100.11%, reflecting prudent credit risk management.
BPI’s total assets rose 6.9% year-on-year to ₱3.3 trillion. Gross loans expanded 13.2% to ₱2.3 trillion, supported by strong growth across all segments, particularly non-institutional loans. Total deposits grew 6.3% to ₱2.6 trillion, resulting in a loan-to-deposit ratio of 89.4%.
Total equity increased 11.3% to ₱448.6 billion. The Bank’s Common Equity Tier 1 (CET1) ratio stood at 14.69%, and its Capital Adequacy Ratio (CAR) at 15.43%—both comfortably above regulatory requirements.
In March 2025, BPI successfully raised US$800 million from the international capital markets through a dual-tranche public offering: US$500 million in 5-year and US$300 million in 10-year Reg S senior unsecured fixed-rate notes. The 5-year tranche was priced at a 105 basis point spread over the prevailing U.S. Treasury with a 5.00% fixed coupon, while the 10-year notes carried a 130 basis point spread and a 5.625% coupon. This marked the largest single issuance in BPI’s history, with the bonds listed on the Singapore Exchange.
Also in March, Fitch Ratings reaffirmed BPI’s Long-Term Issuer Default Rating at “BBB-” with a Stable Outlook. The Bank has completed its annual review with Moody’s Ratings and is awaiting the outcome.
