Ayala-led Bank of the Philippine Islands (BPI) posted a 7.4 percent increase in full-year net income as robust lending across its retail and business segments offset surge in rainy-day buffers.

In a disclosure to the Philippine Stock Exchange on Monday, Feb. 2, the bank reported record bottom line of ₱66.62 billion for 2025, up from ₱62 billion a year earlier.

While BPI saw double-digit growth in its core lending business last year, profit growth was tempered by a nearly threefold increase in provisions for potential loan losses and rising technology costs.

BPI’s total revenues climbed 14.8 percent to ₱195.3 billion, fueled by the 16 percent jump in net interest income.

The bank benefited from widening net interest margin, which expanded 28 basis points to 4.6 percent as it squeezed more profit from a larger pool of assets.

Non-interest income, which includes fees from credit cards and wealth management as well as trading gains, rose 11 percent to ₱47.2 billion.

BPI’s aggressive push into high-yield consumer segments appeared to pay off during the period. While institutional lending grew by a steady 10.4 percent, non-institutional loans surged nearly 26 percent.

The bank’s business banking unit saw its portfolio jump nearly 80 percent, while credit card and personal loan books recorded growth of 31.9 percent and 28.3 percent, respectively. This retail expansion helped drive the total loan book to ₱2.6 trillion.

However, the growth came at a cost; BPI set aside ₱17.8 billion in provisions for the year, a 168.9 percent increase from the ₱6.6 billion booked in 2024. Despite the heavier provisioning, management maintained that credit quality remains under control, with the non-performing loan ratio ending the year at 2.18 percent.

Operating expenses rose nearly 10 percent to ₱92.1 billion, reflecting investments in manpower and digital infrastructure. However, the lender’s efficiency improved, with its cost-to-income ratio dropping to 47.2 percent from 49.3 percent a year ago.

On the balance sheet side, total assets reached ₱3.7 trillion. Deposits grew to ₱2.8 trillion, though the loan-to-deposit ratio tightened to 92.4 percent. The bank remains well-capitalized, reporting a Common Equity Tier 1 ratio of 13.9 percent, comfortably above the regulatory minimums set by the Bangko Sentral ng Pilipinas.