Bank of the Philippine Islands

BPI reported first-quarter 2026 net income of PHP 16.92 billion, up 1.7% year-on-year and 4.9% sequentially. EPS was PHP 3.2, up 1.5% YoY. Revenue rose 13.9% to PHP 50.92 billion, with net interest income up 13.7% to PHP 39.15 billion and trading/ForEx income up 19.5%; ForEx income specifically jumped 32.6%. Operating expenses increased 15.8% to PHP 23.5 billion, while provisions rose 83.3% to PHP 5.5 billion. Pre-provision income was PHP 27.42 billion, up 12.4%. ROE was 14.3% and ROA was 1.9%. Loans grew 13.5% YoY to PHP 2.61 trillion, deposits rose 10.4% to PHP 2.84 trillion, total assets reached PHP 3.7 trillion, CET1 was 13.9%, and CAR was 14.8%. NPLs were PHP 62.9 billion and the NPL ratio was 2.42%; NPL coverage was 87.15% and ECL cover was 103.5%. Management said full-year loan growth is now expected in the 10% to 12% range, down from about 13% previously, and original full-year OpEx growth guidance was around 10%-ish. Provisioning guidance for the year was originally in the 80s, but management said it could move into the 90s and approach 100 bps depending on conditions.

The CEO emphasized that BPI still posted profit growth despite the Middle East crisis and said the quarter was driven by strong revenues, while higher expenses and provisions held back earnings. He framed the credit response as prudent and forward-looking, saying the bank increased provisioning mainly for consumer risk and expects some stress to show up across both consumer and SME books as higher fuel and food costs work through the system. He also stressed that BPI wants to keep serving the consumer market through cycles, while continuing to build digital, agency banking, and data/AI capabilities.

The CFO said the quarter showed solid operating performance even though growth was more moderate than prior periods. He highlighted PHP 16.92 billion of net income, PHP 50.92 billion of revenue, PHP 23.5 billion of OpEx, and PHP 5.5 billion of provisions, with OpEx pressure partly tied to technology, manpower, and timing of expense booking; he said adjusted OpEx growth would have been 13.4% YoY. He also cited strong capital and liquidity, including CET1 of PHP 404 billion, a 13.9% CET1 ratio, CAR of 14.8%, deposits of PHP 2.84 trillion, and a loan-to-funding mix of about 84%.

Analysts focused on the institutional loan NPL spike, consumer stress from the Middle East crisis, and whether higher technology and OpEx spending was temporary or structural. Management said the largest institutional NPL was a fully or substantially collateralized account they expect to resolve, and said coverage should move back toward about 95% in Q2 as recoveries come through. On credit costs, management said provisioning could rise from the 80s into the 90s and approach 100 bps, but they would not give a precise GDP/oil-price sensitivity; on growth, they said loan growth should moderate to 10% to 12% and that deposits should remain available.