MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) sees income growth holding steady in the second half, as strong consumer demand and resilient corporate activity continue to fuel expansion despite downward pressure from lower interest rates.
BPI chief finance officer and chief sustainability officer Eric Luchangco said the bank expects the performance in the second half to mirror the first half, during which loans grew by 14 percent and net interest margins (NIMs) improved by 34 basis points year-on-year.
“We believe all the factors exist for that to continue into the end of the year,” Luchangco said.
“We’ve already seen the impact of interest rate cuts, but our margins remain buoyant because of how we’re managing growth,” Luchangco added.
Luchangco acknowledged that the easing cycle of the Bangko Sentral ng Pilipinas has begun to compress margins, but said the bank’s approach to portfolio expansion has helped mitigate the effect.
“We’re still seeing NIMs well-supported,” he said.
BPI president and CEO Jose Teodoro Limcaoco, meanwhile, said the slowdown in earnings growth across the banking sector is expected as interest rates come down.
“The era of record earnings growth may be moderating, but we think banks, especially BPI, will continue to perform well,” Limcaoco said.
According to Limcaoco, the bank’s focus on broadening its customer base, particularly through digital platforms, as a key driver moving forward.
“We’ve grown from eight million to nearly 18 million customers in just four years,” he said. “This is powered by our strong digital infrastructure, including seven core platforms, and our ongoing push to make banking more accessible.”
BPI is also seeing rapid growth in its consumer and micro, small and medium enterprise (MSME) portfolios. Loans from the bank’s non-institutional business grew by 26.9 percent in the first half, nearly triple the 9.4-percent growth in its institutional portfolio.
Credit cards, personal loans, auto and housing loans, as well as a growing teacher loan portfolio fueled retail lending growth.
Limcaoco said these segments are key to sustaining growth, with BPI BanKo and the teacher lending program playing a vital role in deepening financial inclusion.
“This is how we build a better Philippines — by serving individuals, small businesses and communities,” Limcaoco said.
On digital transformation, BPI highlighted its use of artificial intelligence to standardize internal communications and support customer service. It also continues to scale its wealth business, with assets under management hitting P1.68 trillion, up 24 percent year-on-year, and wealth clients growing to 1.3 million.
To mark its 174th anniversary, BPI is launching the “Do More Philippines” campaign.
“This is the start of our 175th year, and we want to reinforce our role as a vital institution in building a better country,” Limcaoco said.
Limcaoco also said that BPI remains committed to supporting consumers, MSMEs and large corporations.
“Whether it’s through credit, payments, or investments, we want to be a partner for every Filipino,” he said.
BPI also confirmed that it recently secured the green light from the Monetary Authority of Singapore to open a Singapore office, with more details to be disclosed in the coming weeks.
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