Bank of Commerce, the banking arm of conglomerate San Miguel Corp., reported record full-year earnings as surging interest income and disciplined approach to costs drove a third consecutive year of growth following its initial public offering.

In a disclosure to the Philippine Stock Exchange on Wednesday, April 1, the bank reported thart its net income for the year ended Dec. 31, 2025, rose 17 percent to ₱3.54 billion from ₱3.02 billion a year earlier.

The full-year result is nearly double the ₱1.80 billion the bank earned in 2022, its debut year on the local bourse. The performance pushed return on equity to a 16-year high of 10.14 percent, a leap from the 7.01 percent recorded during its IPO year.

According to BankCom, the bank’s growth trajectory enabled it to pay an inaugural special dividend to shareholders on July 15, 2025.

Core lending operations remained the primary engine of growth. Net interest income jumped 18 percent to ₱10.78 billion, supported by an expansion in loans and receivables. This helped lift the net interest margin to 4.35 percent, the highest level since 2009.

While the fourth quarter saw a slight two percent dip in net income to ₱794.79 million compared to the same period in 2024, interest income for the quarter remained robust, rising 23 percent year-on-year.

The lender is also finding success in managing its overhead. The cost-to-income ratio improved to 59 percent from 62 percent in 2024, even as the bank ramped up spending on human capital and digital infrastructure. IT-related subscription fees more than doubled to ₱229.41 million as the firm modernized its systems.

Total assets grew eight percent to ₱286.85 billion, while the loan portfolio expanded 19 percent to ₱162.82 billion. Despite the aggressive lending, asset quality remained stable with a net non-performing loan ratio of 0.62 percent.

BankCom is positioning for a shifting rate environment, increasing its holdings of investment securities at amortized cost to ₱41.37 billion. The bank said it is expanding these positions in anticipation of further yield declines, citing a backdrop of low inflation and the potential for additional interest rate cuts by the Bangko Sentral ng Pilipinas.

Capital levels remain comfortably above regulatory floors, with a capital adequacy ratio of 16.48 percent. The bank is using its liquidity to expand its physical footprint, recently opening “branch lite” units at Caticlan airport and Ninoy Aquino International Airport Terminal 3 to capture higher foot traffic and increase brand visibility.