BPI reports 5% Q1 profit drop due to loan loss provisions

Ayala-led Bank of the Philippine Islands (BPI) reported a 5% decline in first-quarter net income to P6.39 billion due to higher provisions for loan losses amid the COVID-19 pandemic.

Provisions for probable credit losses surged to P4.23 billion, more than double the P1.80 billion set aside last year, as BPI anticipates potential future nonperforming loans.

Despite the provision increase, total revenues grew by 10.9% to P25.26 billion, with net interest income rising 13% to P18.14 billion.

BPI President Cezar Consing noted that while the current situation is challenging, the domestic economy and banking system are better positioned compared to the Asian crisis.