BPI profit grows 8% to P33 billion on higher net interest income

BPI reported a nearly 8% profit growth, reaching P33 billion in the first half of the year, primarily fueled by a significant increase in net interest income.

The bank's net interest income surged by 16.2% to P71.2 billion, driven by a 14.1% expansion in gross loans, particularly in non-institutional lending.

Despite a manageable non-performing loans (NPL) ratio of 2.25%, BPI prudently increased its loan loss provisions by over 140% to P7.3 billion, maintaining a strong NPL coverage ratio of 123.8%.

Non-interest income also contributed positively, growing by 7.4% to P21.4 billion from increased activity in credit cards, insurance, and wealth management.

Overall revenue saw a substantial 14% increase, totaling P92.6 billion.

Total deposits grew by 6.5% to P2.6 trillion, with a significant portion coming from low-interest current and savings accounts.

The bank's net interest margin improved by 32 basis points to 4.58% due to the favorable difference between interest earned on loans and interest paid on deposits.