Mild 2Q26 profit miss but with more encouraging takeaways

研报英文原文证据摘录

Mild 2Q26 profit miss but with more encouraging takeaways

iQprofile SM Bank of the Philippine Islands

Key Income Statement Data (Dec) 2024A 2025A 2026E 2027E 2028E Company Sector

(PHP Millions) Banks-Retail

Net Interest Income 127,586 148,028 165,163 179,525 195,883

Net Fee Income 18,173 19,250 21,959 24,155 26,570

Securities Gains / (Losses) 6,767 8,404 7,984 7,585 7,585 Company Description Other Income 17,613 19,595 21,555 23,710 26,081

Total Non-Interest Income 42,553 47,249 51,497 55,449 60,236 BPI is the third-largest Philippine bank, with 13% of

Total Operating Income 170,139 195,277 216,661 234,974 256,119 industry assets but is more profitable than peer big banks

Operating Expenses (83,796) (92,105) (102,539) (114,158) (127,095) by virtue of better asset quality and stringent cost control.

Pre-Provision Profit 86,343 103,172 114,121 120,817 129,024 Ayala Corporation is BPI's controlling shareholder, which

Provisions Expense (6,600) (17,750) (27,544) (27,009) (27,814)

owns 48% of BPI.

Operating Profit 79,743 85,422 86,577 93,808 101,209

Non-Operating Income NA NA NA NA NA

Pre-Tax Income 79,743 85,422 86,577 93,808 101,209

Net Income to Comm S/Hold. 62,049 66,615 67,519 73,187 78,981 Investment Rationale

Adjusted Net Income (Operating) 62,049 66,615 67,519 73,187 78,981 We rate BPI as Buy. Moderate provisioning, the impact of

Key Balance Sheet Data rising rates to NIMs, and fee income share gains will drive

Total Assets 3,318,813 3,651,488 3,987,667 4,301,105 4,705,939 bottom line. BPI is well positioned to pursue its growth

Average Interest Earning Assets 2,957,155 3,310,841 3,631,123 3,939,524 4,279,821 plans, given its healthy liquidity and capital positions. ROE

Weighted Risk Assets 2,641,674 2,886,738 3,152,509 3,400,303 3,720,350 of 15% looks sustainable.