BPI's 2024 profits reach a record-setting P62 billion

Bank of the Philippine Islands Reports Record-High Profit in 2024

The Bank of the Philippine Islands (BPI), under the leadership of the Ayala Group, achieved a remarkable financial milestone in 2024 by posting a 20% increase in net profit. The record-high earnings of P62 billion surpass the previous year’s figure of P51.7 billion, driven by strong revenue growth and robust performance across key business segments.

Impressive Revenue Growth and Profitability Metrics

BPI’s total revenues grew by 23% to reach P170.1 billion, reflecting the bank’s strong operational performance. A key contributor to this growth was the 22.3% rise in net interest income, which amounted to P127.6 billion. Meanwhile, non-interest income also saw significant expansion, climbing 25.3% to P42.6 billion. This was fueled by gains in sectors such as credit card services, wealth management, and bancassurance.

The bank demonstrated solid profitability metrics, with a return on equity (ROE) of 15.1% and a return on assets (ROA) of 2%, underscoring its efficient use of resources and its ability to generate value for shareholders.

Operating Costs and Loan Loss Provisions

Despite the strong revenue growth, BPI’s operating expenses rose 21.3% to P83.8 billion, driven by higher spending on manpower, technology investments, and volume-related expenses. The bank’s provision for loan losses also surged by 65% to P6.6 billion, reflecting its cautious approach to risk management amid evolving market conditions.

The increase in provisions resulted in a non-performing loan (NPL) ratio of 2.13%, indicating that while BPI’s credit portfolio remains strong, the bank continues to allocate resources to address potential risks.

Q4 2024 Performance Highlights

During the fourth quarter of 2024, BPI reported an 8% increase in net income, amounting to P14.1 billion. Total loans grew by an impressive 18.2% to P2.3 trillion, driven by strong 13% organic growth. On the other hand, deposits also rose by 13.9% to P2.6 trillion, reinforcing the bank’s liquidity position and capacity to support future lending activities.

BPI’s total assets expanded by 14.9% to P3.3 trillion, while equity increased to P430.5 billion, reflecting the bank’s steady financial foundation.

Strong Capital Position

BPI ended 2024 with a Common Equity Tier 1 (CET1) ratio of 13.8% and a capital adequacy ratio (CAR) of 14.5%. Both metrics exceed regulatory requirements, highlighting the bank’s commitment to maintaining a robust capital structure and its ability to weather economic uncertainties.

Outlook for 2025 and Beyond

With record-breaking profits and continued growth across its business lines, BPI is well-positioned to sustain its momentum heading into 2025. The bank’s focus on leveraging digital transformation, expanding its wealth management services, and maintaining prudent risk management practices will be key drivers of its long-term success.

As BPI adapts to the evolving needs of its clients and navigates challenges in the financial sector, its impressive performance in 2024 serves as a testament to its resilience and strategic execution.