BPI shares rose last week even as first-half net income dipped slightly and loan loss provisions climbed, with investors prioritizing the bank’s steady operating results over its larger credit buffers.
Exchange data showed BPI was the fifth most actively traded stock for the week, with 10.8 million shares worth 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 index.
Year to date, BPI shares have fallen 10.4% from their end-2025 close, while the broader market gained 5.8% and the financial index declined 5.2% over the same span.
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 noted the increase in provisioning aligned with expectations of a more conservative credit cost outlook that the market had already priced in.
Observers said investors focused on resilient operating performance, viewing higher provisions as prudent rather than a signal of widespread credit deterioration.
The bank’s non-performing loan ratio held at 2.42% quarter on quarter, up from 2.25% a year earlier, reinforcing the view of contained asset quality risk.
One analyst attributed the conservative provisioning to elevated inflation pressuring consumer repayment capacity, while noting revenue growth may persist as price pressures ease from a 7.2% peak.
Another analyst emphasized that stronger provisions do not imply serious credit problems, citing robust growth in interest and fee income as evidence of a healthy core business.
Financial stocks also drew support from central bank data showing industry assets rose 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% year on year, and analysts expect consistent payouts given the bank’s history of maintaining at least a 30% payout ratio even during the pandemic.
Forecasts for the bank’s 2026 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.
