BPI Reports P32.8B Net Income for First Half of 2026
Ayala subsidiary BPI reports a P32.8 billion net income for the first half of 2026 despite rising operating expenses.
The Bank of the Philippine Islands (BPI) ended the first half of 2026 with a net income of P32.8 billion, a 0.4% dip from the P33.0 billion posted in the same period last year.
In a press release published on July 16, 2026, BPI reported its H1 2026 (first half of 2026) financials, which showed rising operating expenses eroding revenue gains.
The bank’s total revenues for the period stood at P104.0 billion, up 12.4% year-on-year, with net interest income inching up by 12.5%.
An 11.3% increase in the average earning asset base, as well as a 5-basis point expansion in net interest margins to 4.63%, contributed to the revenue growth, BPI stated.
Non-interest income climbed to P24.0 billion. The climb came from stronger fee income growth of 18.0%, stemming from higher contributions from credit cards, investment banking, insurance, and wealth management.
BPI posted operating expenses at P48.6 billion, up 13.8% from the same period last year. “Higher manpower, technology, and business volume-related costs” contributed to the increased operating expenses, the bank said.
Provisions for H1 increased to P13.3 billion, an 84% leap from last year.
Provisions are funds banks set aside from their profits to cover possible losses in the future or meet unavoidable financial obligations.
BPI’s Expected Credit Losses, the estimated amount of money that might be lost across a portfolio, rose “due to deteriorating macroeconomic conditions and outlook,” the bank also said.
The Non-Performing Loan (NPL) ratio was flat quarter-on-quarter at 2.42%. NPL coverage ratio expanded to 92.98%.
NPL is a loan that is in default or about to default due to a borrower missing scheduled payments.
The bank’s assets stood at P3.7 trillion, growing by 9.6% year-on-year. Its total loans jumped by 12.4% year-on-year to P2.7 trillion.
Frequently Asked Questions
BPI posted a net income of P32.8 billion for H1 2026, a 0.4% decline from the P33.0 billion recorded in the same period in 2025. The dip came despite a 12.4% rise in total revenues, as operating expenses and provisions grew faster.
Net income fell because growth in operating expenses (up 13.8%) and loan-loss provisions (up 84%) outpaced the bank’s 12.4% revenue growth. BPI attributed the higher costs to manpower, technology, and business volume-related spending, and the provision increase to deteriorating macroeconomic conditions.
BPI’s NPL ratio held flat quarter-on-quarter at 2.42%, with NPL coverage expanding to 92.98%. A stable NPL ratio alongside a rising coverage ratio suggests the bank is provisioning more conservatively even as its loan book grows, a signal of cautious asset-quality management.
BPI’s operating expenses rose 13.8% year-on-year to P48.6 billion in H1 2026. The bank attributed the increase to higher manpower costs, technology investment, and business volume-related spending tied to its growing loan and asset base.
BPI’s total assets grew 9.6% year-on-year to P3.7 trillion, while total loans rose 12.4% to P2.7 trillion. This growth was supported by an 11.3% increase in the average earning asset base that also underpinned the bank’s revenue gains.
