San Miguel Corp.’s (SMC) affiliate Bank of Commerce (BankCom) posted a 31-percent growth in unaudited net income to ₱1.86 billion in the first half of 2025 primarily due to strong revenue growth.

In a disclosure to the Philippine Stock Exchange (PSE), the bank said its earnings translated to a return on equity (ROE) and return on asset (ROA) of 11 percent and 1.39 percent, respectively.

“The robust performance was underpinned by sustained growth across core revenue streams, driven by net interest income, gains from trading securities, and foreign exchange (forex) transactions,” BankCom said.

It added that, “The bank’s strategy of improving its revenue streams and prudent spending resulted in a lower cost-to-income ratio of 59 percent.”

Net interest income rose to ₱5.15 billion, marking a 14-percent increase from ₱4.53 billion recorded in 2024. The upward trajectory was due to the expansion in earning assets, primarily from loans, financial assets at fair value, and other investment securities.

The higher growth in revenues from earning assets than interest-bearing liabilities translated to an improvement in net interest margin (NIM) at 4.27 percent.

Other income was significantly up by 31 percent to ₱912.52 million, on account of the significant surge in trading and forex gains as well as higher revenues related to real and other properties acquired (ROPA).

As of June 30, 2025, total assets stood at ₱271.53 billion as total loans and receivables, which comprise almost 53 percent of total assets, expanded by five percent to ₱143.58 billion from ₱136.51 billion in 2024.

The growth was broad-based across all lending segments, resulting in a healthy loan-to-deposit ratio of 71 percent. Asset quality remained sound, with gross non-performing loans (NPL) at 1.34 percent and net NPL at 0.53 percent, slightly up from 1.25 percent and 0.49 percent, respectively, at the end of 2024.

Total deposits were moderately lower by four percent at ₱203.82 billion from the ₱212.01 billion in 2024 due to seasonality in the use of larger business accounts.

The deposit mix includes ₱185.39 billion in current account and savings account (CASA) deposits, ₱13.4 billion in time deposits, and ₱5.03 billion in long-term negotiable certificates of deposit (LTNCD).

Bonds payable surged to ₱24.41 billion, nearly four times the previous year’s level of ₱6.53 billion, following the successful issuance of the dual-tranche fixed-rate bond on Feb. 19, 2025.