Bank of Commerce (BankCom), the banking arm of Ramon Ang’s diversified conglomerate San Miguel Corp., reported a 13 percent increase in first-quarter net income as higher interest rates and robust lending activity offset a slump in trading gains triggered by geopolitical tensions.

In a disclosure to the Philippine Stock Exchange on Wednesday, May 13, BankCom said the lender’s unaudited net profit reached ₱976.19 million in the three months through March.

The bank attributed the performance to “sustained growth trajectory” even as financial markets grappled with volatility stemming from the ongoing conflict in the Middle East. The quarterly result translated to a return on equity of 10.74 percent and a return on assets of 1.32 percent.

Net interest income, the difference between what a bank earns on loans and pays out on deposits, surged 20 percent to ₱2.98 billion from ₱2.49 billion a year earlier.

According to BankCom, this growth was fueled by an expansion in interest-earning assets, particularly higher average daily volumes for loans and receivables. The bank’s net interest margin stood at 4.41 percent, as revenue growth from assets outpaced the rising cost of its interest-bearing liabilities.

However, the bank was not immune to global market jitters. Other income tumbled 39 percent to ₱304.51 million, largely due to trading losses. The lender noted that these losses were a direct result of market swings linked to geopolitical developments.

This decline was partially mitigated by a 14 percent rise in gains from the sale of foreclosed properties—referred to as real estate and other properties acquired (ROPA)—which totaled ₱164.88 million. Increased client-related foreign exchange transactions also provided a buffer against the trading slump.

Operating expenses rose 11 percent to ₱1.99 billion, excluding provisions for credit and impairment losses. Bank of Commerce said the higher spending reflects ongoing strategic investments in human capital, physical branch sites, and digital technology, all of which are intended to support its expanding scale and higher transaction volumes.

The lender remains focused on leveraging its relationship with the San Miguel group while expanding its reach in the consumer and corporate sectors. By maintaining a lean balance sheet and focusing on core lending, Bank of Commerce aims to sustain its momentum despite a complex global macroeconomic backdrop.