Bank of the Philippine Islands: Higher credit costs and slower loan growth as expected - overall earnings in line

研报英文原文证据摘录

Bank of the Philippine Islands: Higher credit costs and slower loan growth as expected - overall earnings in line

Global Research

16 July 2026ab

First Read

EquitiesBank of the Philippine Islands

Higher credit costs and slower loan growth as Philippines

expected - overall earnings in line Banks, Ex-S&L

12-month rating Buy

12m price target P145.00

Higher credit costs, slower loans growth in line with expectations

Q226 net profit was broadly in line with UBS and consensus expectations as higher

operating expenses offset slightly stronger revenues. 3 key takeaways from the results. Price (15 Jul 2026) P103.50

RIC: BPI.PS BBG: BPI PM

Asset quality – Credit costs increased to 118bps in Q226, broadly in line with

expectations (UBSe: 115bps). This brings 1H26 credit costs to 100bps which is at Trading data and key metrics

the upper end of the 90-100bps guidance for the year. NPL ratio was flat q/q at 52-wk range P127.80-87.10

2.42% while NPL coverage improved to 93%, in line with guidance for multiple Market cap. P547b/US$8.86b

corporate account recoveries in Q2. Mgmt cited a softer macroeconomic Shares o/s 5,284m (ORD)

environment as the main driver of higher provisioning. We remain watchful of any Free float 54%

further deterioration in the coming quarters given the challenging macro setup

Avg. daily volume ('000) 3,376

this year and BPI's rapid growth in the consumer/SME loan segments over the last

Avg. daily value (m) P318.3

several quarters. UBS forecasts Philippines GDP growth at 3.3%, and expects CPI

Common s/h equity (12/26E) P501b

to be elevated at around 5.6% this year, with additional downside risks from El

Niño-related disruptions. We currently forecast 95bps credit costs for this year with P/BV (12/26E) 1.1x

a risk that this could be higher. Tier 1 ratio 13%