Zobel-led Bank of the Philippine Islands (BPI) posted a 7.8 percent improvement in net income to ₱33 billion for the first half of 2025 from the ₱30.6 billion earned in the same period last year on strong growth in net interest income.

In a disclosure to the Philippine Stock Exchange, the bank stated that its higher earnings were driven by strong revenue growth, but were partially tempered by increases in operating expenses and provisions.

Total revenues at end-June stood at ₱92.6 billion, up 14.0 percent from last year.

This was fuelled by the 16.2 percent increase in net interest income to ₱71.2 billion, on the back of the 8.3 percent increase in the average earning asset base, and a 32-basis point expansion in net interest margin to 4.58 percent.

Non-interest income reached ₱21.4 billion, up 7.4 percent from last year, driven by the underlying strength of the bank’s fee businesses led by credit cards, insurance, and wealth management.

Operating expenses reached ₱42.7 billion in the first semester, up 11.7 percent year-on-year, due to spending on technology, business volume-related expenses, and manpower structural increases.

Despite the increase in operational expenses, the cost-to-income ratio improved by 96 basis points to 46.2 percent, owing to robust revenue growth.

The bank booked provisions of ₱7.3 billion, a 141.7 percent hike from last year. The non-performing loan ratio was 2.25 percent, with the NPL coverage ratio at 97.1 percent. Based on BSP Circular 941, the Bank’s NPL coverage ratio translates to 123.8 percent.

Total assets reached ₱3.4 trillion, representing a 9.3 percent year-over-year increase. Gross loans reached ₱2.4 trillion, up 14.1 percent from last year, due to robust growth across all portfolios, led by strong growth from non-institutional loans.

Total deposits increased by ₱2.6 trillion, representing a 6.5 percent year-over-year growth. The Bank’s current accounts and savings accounts (CASA) stood at ₱1.6 trillion, up 2.8 percent, with a CASA Ratio of 62.4 percent, while the Loan-to-Deposit Ratio reached 90.9 percent.

Total equity stood at ₱453.5 billion, up 11.5 percent year-on-year, with an indicative Common Equity Tier 1 Ratio of 14.5 percent and a Capital Adequacy Ratio of 15.3 percent, both well above regulatory requirements.

In June 2025, the Bank issued its 1.5-year peso-denominated fixed-rate BPI Supporting Inclusion, Nature, and Growth Bonds, or BPI SINAG Bonds, with an aggregate principal amount of ₱40.0 billion.

As the first tranche under the Bank’s ₱200 billion Bond and Commercial Paper Program, the BPI SINAG Bonds bear an interest rate of 5.85 percent per annum, paid quarterly. The SINAG Bonds were listed in the Philippine Dealing & Exchange Corp.