BPI shares rise on higher earnings, Singapore expansion

SHARES in Bank of the Philippine Islands (BPI) climbed last week after the Ayala-led lender reported higher nine-month earnings and announced the launch of its Singapore-based wealth unit.

BPI was the sixth most actively traded stock from Oct. 13 to 17, with P857.49 million worth of 7.97 million shares changing hands, data from the Philippine Stock Exchange (PSE) showed.

The stock gained 2.6% week on week to close at P109.20 apiece on Friday, outperforming the financial subindex’s 1.8% rise and the benchmark PSE index’s 0.9% advance.

Despite last week’s gain, BPI shares were still down about 10.5% year to date, underperforming the financial sector’s 4.6% decline and the PSEi’s 6.7% slip.

The bank’s nine-month net income grew by 5.2% year on year to P50.5 billion on the back of higher interest and fee-based income.

Revenues rose 13.2% to P142.3 billion, driven by a 16.2% increase in net interest income to P109.1 billion.

Non-interest income rose 4.2% to P33.3 billion as the bank booked stronger fees from credit cards and wealth management.

Its nonperforming loan (NPL) ratio stood at 2.3%, with an NPL coverage of 96.5%. Provisions reached P11.8 billion during the nine-month period.

Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said the results reflected “sustained loan growth and effective balance sheet management amid high rates,” supporting the stock’s gains.

“Expect near-term appreciation, particularly if the fourth quarter maintains this momentum,” he said in a Viber message.

First Resources Management and Securities Corp. Analyst Jash Matthew M. Baylon said earnings were “mainly driven by stronger margins and loan expansion despite lower benchmark rates.”

The Bangko Sentral ng Pilipinas cut its policy rate by 25 basis points (bps) to 4.75% on Oct. 10, marking a total reduction of 175 bps since August 2024.

BPI also launched BPI Wealth Singapore, a wholly owned subsidiary aimed at serving affluent and expatriate clients in Asia’s financial hub.

“Singapore is where next-generation wealth conversations are happening,” BPI Chairman Jaime Augusto Zobel de Ayala said in a statement.

Mr. Arce said the new unit could contribute 2-4% of BPI’s net income in the next two to three years.

For the full year, analysts expect the lender’s net income to reach about P66 billion, up 7% year on year, with share support seen between P100 and P108 and resistance around P115. — Pierce Oel A. Montalvo