BPI's nine-month profit slips as provisions rise 69.2%; card and personal loans grow fast
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Key points
- Bank of the Philippine Islands (BPI) reported nine-month net income of PHP 48.9 bn, down 3.2% from PHP 50.5 bn a year earlier, as provisions for credit losses rose 69.2% to PHP 19.9 bn.
- Credit card loans grew 27.2% and personal loans 21.7% year on year, faster than total loans, which reached PHP 2.7 trn.
- The NPL ratio rose to 2.50% while NPL coverage fell to 89.6%, although third-quarter provisions were 16.5% lower than in the second quarter.
Implications for lenders
Fast growth in cards (27.2%) and personal loans (21.7%) at a large bank came with provisions up 69.2%, a reminder that unsecured books may need reserves built ahead of arrears. Lenders in these segments can compare their own coverage and roll rates with the system card NPL ratio of 5.34% rather than with bank-wide averages.
Implications
Facts
Earnings: BPI, one of the Philippines' largest banks, disclosed to the stock exchange that net income for January–September 2026 was PHP 48.9 bn, down 3.2% from PHP 50.5 bn a year earlier. 1 Provisions for credit losses were PHP 19.9 bn, up from PHP 11.8 bn a year earlier, an increase of 69.2%. 2 Third-quarter provisions fell 16.5% from the second quarter. 3
Loans: total loans reached PHP 2.7 trn, up 13.6% year on year. 4 Non-institutional lending grew faster than institutional lending: SME loans rose 46.7%, 5 credit card loans 27.2% 6 and personal loans 21.7%. 7
Asset quality: the NPL ratio was 2.50%, up from 2.3% a year earlier, 8 and the NPL coverage ratio 89.6%, down from 96.5% a year earlier. 9
Analysis
Against the system: BPI's card and personal loan growth is faster than consumer lending across universal and commercial banks, which grew 16.2% in August. 10 BPI's NPL ratio of 2.50% remains below the banking-system ratio of 3.35% in August, 11 but consumer products carry higher arrears across the system: the consumer loan NPL ratio was 5.49% 12 and the credit card NPL ratio 5.34% in July. 13 A shift in the mix toward cards, personal loans and SMEs therefore tends to raise provisioning needs even before arrears appear.
Time series: the bank's NPL ratio rose from a year earlier while coverage fell, so reserves have grown more slowly than bad loans despite the jump in provisions. The quarter-on-quarter fall in third-quarter provisions suggests that much of the year's build came in the first half.
| 2026-02 | 3.33 |
|---|---|
| 2026-03 | 3.29 |
| 2026-04 | 3.37 |
| 2026-05 | 3.44 |
| 2026-06 | 3.29 |
| 2026-07 | 3.35 |
| 2026-08 | 3.35 |
Gross NPL ratio of the Philippine banking industry, month-end, BSP preliminary data as reported in the press · Source: Philstar reports of BSP banking-industry NPL data (2026-02, 2026-03, 2026-04, 2026-05, 2026-06, 2026-07, 2026-08) Preliminary figures; BSP may revise them.
Counterpoints and uncertainties
Results are for one bank and come from press reports of its disclosure; other large banks report later and may show different trends. The BSP's policy rate increase to 5.50% on 22 October, 14 after the reporting period, could add pressure on variable-rate and unsecured borrowers; on the other hand, the lower third-quarter provisions may indicate that the bank's provisioning build is easing.
Key figures
- BPI net income, first nine months of 2026: PHP 48.9 bn (down 3.2% from PHP 50.5 bn a year earlier). Net income, January–September 2026, as disclosed by the bank. Bank of the Philippine Islands, consolidated. Basis date: 30 Sep 2026. Source: Insider PH: BPI 9-mo profit dips 3% despite strong lending as provisions surge (2026-10-22)
- Increase in BPI provisions, first nine months of 2026 vs a year earlier: 69.2% (year on year). Year-on-year change in provisions for credit losses, January–September. Bank of the Philippine Islands, consolidated. Basis date: 30 Sep 2026. Source: Insider PH: BPI 9-mo profit dips 3% despite strong lending as provisions surge (2026-10-22)
- Decline in BPI provisions, third quarter 2026 vs second quarter: 16.5% (third quarter vs second quarter 2026). Quarter-on-quarter decline in provisions for credit losses, Q3 2026. Bank of the Philippine Islands, consolidated. Basis date: 30 Sep 2026. Source: Insider PH: BPI 9-mo profit dips 3% despite strong lending as provisions surge (2026-10-22)
- BPI total loans, end-September 2026: PHP 2.7 trn (up 13.6% year on year). Total loans outstanding at end-September 2026. Bank of the Philippine Islands, consolidated. Basis date: 30 Sep 2026. Source: Insider PH: BPI 9-mo profit dips 3% despite strong lending as provisions surge (2026-10-22)
- BPI SME loan growth, end-September 2026: 46.7% (year on year). Year-on-year growth of SME loans (part of non-institutional loans). Bank of the Philippine Islands, consolidated. Basis date: 30 Sep 2026. Source: Insider PH: BPI 9-mo profit dips 3% despite strong lending as provisions surge (2026-10-22)
- BPI credit card loan growth, end-September 2026: 27.2% (year on year). Year-on-year growth of credit card loans. Bank of the Philippine Islands, consolidated. Basis date: 30 Sep 2026. Source: Insider PH: BPI 9-mo profit dips 3% despite strong lending as provisions surge (2026-10-22)
- BPI personal loan growth, end-September 2026: 21.7% (year on year). Year-on-year growth of personal loans. Bank of the Philippine Islands, consolidated. Basis date: 30 Sep 2026. Source: Insider PH: BPI 9-mo profit dips 3% despite strong lending as provisions surge (2026-10-22)
- BPI NPL ratio, end-September 2026: 2.50% (up from 2.3% a year earlier). Non-performing loans / total loans, as disclosed by the bank. Bank of the Philippine Islands, consolidated. Basis date: 30 Sep 2026. Source: Insider PH: BPI 9-mo profit dips 3% despite strong lending as provisions surge (2026-10-22)
- BPI NPL coverage ratio, end-September 2026: 89.6% (down from 96.5% a year earlier). Loan-loss allowances / non-performing loans. Bank of the Philippine Islands, consolidated. Basis date: 30 Sep 2026. Source: Insider PH: BPI 9-mo profit dips 3% despite strong lending as provisions surge (2026-10-22)
- Consumer loan growth: 16.2% (down from 17.1% in July). Year-on-year growth of outstanding consumer loans to residents. Universal and commercial banks. Basis date: 31 Aug 2026. Source: Philstar: Bank lending growth reaches 3-month high (2026-10-02)
- Banking system NPL ratio: 3.35% (unchanged from July; down from 3.50% in August 2025). Gross non-performing loans as a share of total loans (BSP data). Philippine banking system. Basis date: 31 Aug 2026. Source: Philstar: Banks' bad loan ratio steady at 3.35% in August (2026-10-05)
Preliminary BSP data as reported in the press; BSP may revise them.
- Consumer loan NPL ratio: 5.49% (up from 5.44% in June). Non-performing consumer loans as a share of consumer loans (BSP data). Philippine banking system. Basis date: 31 Jul 2026. Source: Inquirer: Bad loans up amid continuing consumer strain (2026-09-09)
- Credit card NPL ratio: 5.34% (up from 5.28% in June). Non-performing loans as a share of total loans (BSP data). Credit card portfolio, banks. Basis date: 31 Jul 2026. Source: Inquirer: Bad loans up amid continuing consumer strain (2026-09-09)
- BSP policy rate after the 22 October 2026 meeting: 5.50% (up from 5.0%). BSP target reverse repurchase (RRP) rate. Philippines, national. Basis date: 22 Oct 2026. Source: Philstar: Inflation risks prompt BSP to hike rates anew (2026-10-22)
Sources
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