Shares of Bank of the Philippine Islands rose last week even as first-half net income dipped slightly and credit provisions climbed, with investors focusing on the bank’s resilient core operations.
Data from the local exchange showed BPI was the fifth most actively traded stock for the week, with 10.8 million shares valued at P1.12 billion changing hands.
The stock closed at P104 per share on Friday, up 1% from P103 a week earlier, though the gain lagged the 1.9% rise in the benchmark index and the 1.3% advance in the financial sector.
Year to date, BPI shares have fallen 10.4% from their end-2025 close, while the broad market index has gained 5.8% and the financial sector has declined 5.2%.
The bank reported a 0.4% year-on-year drop in first-half net income to P32.8 billion, as provisions surged 84% to P13.3 billion.
Analysts said the market had largely anticipated the higher provisions, viewing them as a prudent and proactive credit stance rather than a signal of widespread deterioration.
The bank’s non-performing loan ratio held at 2.42% quarter on quarter, up modestly from 2.25% a year earlier, while strong interest and fee income underscored healthy underlying business performance.
Some traders noted the conservative provisioning reflects caution toward elevated inflation, which could strain consumer repayment capacity, though easing price pressures may support consumption recovery.
Broader industry data also lent support, with banking system assets rising 11.69% year on year to a record P30.442 trillion in May.
BPI distributed cash dividends of P2.58 per share in June, up 24% from a year earlier, and analysts expect consistent payouts given the bank’s history of maintaining at least a 30% payout ratio even during the pandemic.
Forecasts for full-year parent net earnings range from P68.2 billion to P73.4 billion, with technical support seen near P99 to P103 and resistance between P106 and P115.
