Bank of the Philippine Islands (BPI) Q2 2024 earnings summary

Executive summary

• Net income for H1 2024 reached PHP 30.6 billion, up 22% year-over-year, with Q2 net income at PHP 15.3 billion, supported by robust revenues and positive operating leverage despite higher one-off expenses.

• Return on equity was 15.5% and return on assets was 2.0%, both highest since 2016.

• Earnings per share for H1 2024 was PHP 5.80, up 14% year-over-year, despite additional shares from a merger.

• Client base expanded to 12.5 million, with digital initiatives and ESG leadership driving engagement.

• Total resources reached PHP 3.11 trillion as of June 30, 2024, up 7.7% from December 2023.

Financial highlights

• Net interest income for H1 2024 rose 22.2% year-over-year to PHP 61.25 billion, with total revenues up 23.8% to PHP 81.2 billion.

• Fee income reached PHP 16.99 billion, up 28.8% year-over-year, led by cards, wealth management, and insurance.

• Operating expenses grew 21.9% to PHP 38.3 billion, mainly from manpower, technology, and marketing costs.

• Cost-to-income ratio improved to 47.1% from 47.9% year-over-year.

• Loans and deposits grew 17.4% and 14.4% year-over-year, respectively; loan-to-deposit ratio at 85%.

Outlook and guidance

• Loan growth guidance for 2024 remains at 10%-12% on an organic basis.

• NIMs expected to remain stable for the rest of the year, even with anticipated rate cuts.

• CET1 ratio projected to stay within the 14% range by year-end.

• Fitch and Moody’s reaffirmed investment grade ratings and stable outlook in Q2 2024.

• Ongoing risk management and stress testing are in place to address macroeconomic uncertainties.