BPI hopes to beat 2025 results as rate cuts drive loan demand

BANK of the Philippine Islands (BPI) hopes to beat its 2025 performance this year as further monetary easing could help drive loan demand despite weakening investor confidence amid domestic and global uncertainties.

“It should be a fairly decent year for us. We’re looking at hopefully outperforming last year’s results. But I think there are a couple of things that we need to be aware of. There’s a bit of hesitancy due to some of the global tensions and some local noise, if you will. But as far as we’re concerned, the demand should come back,” Bank of the Philippine Islands (BPI) President and Chief Executive Officer Teodoro K. Limcaoco told reporters on the sidelines of a central bank event on Friday.

BPI’s attributable net income inched up by 0.6% to P17.526 billion in the third quarter of 2025. This brought its nine-month profit to P50.48 billion, rising by 5.21%.

Mr. Limcaoco said their net profit will likely grow by “high single digits” this year, while their loans could expand by 10%-15% year on year.

“We will continue to push the consumer end, which I think is still buoyant. There’s an underserved market and there’s demand.”

He also expects corporate sentiment to recover, with further cuts by both the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve likely to spur demand for credit.

“You want confidence that things are clear both globally and domestically, right?… It’s all about confidence. Confidence is when you look around and say, okay, maybe it’s okay, and then the first person goes and the second person follows, and so forth. I think it could turn very fast. But I don’t know when it could be. So, you have to be prepared for it,” he said.

“There is cash in the system. The banks will have capacity to lend. We just need the demand, and I think that could come. The sentiment could turn very good. So, I’m hopeful for the year, especially when you look at what the BSP might do in terms of monetary policy. If the Fed cuts, they’ll probably cut as well, right?… That would be good for business.”

The Fed was set to conclude its two-day meeting overnight, where it was expected to pause its easing cycle and keep benchmark borrowing costs at the current 3.5%-3.75% range. Still, markets expect the US central bank to resume its cuts by mid-year — likely after Fed chief Jerome H. Powell ends his term.

Economic data since the last meeting in early December has shown little change in either labor market or inflation trends, offering scant impetus for guidance on when rates might fall again, Reuters reported. Job growth has been weak, but the unemployment rate dipped in December to 4.4%, amid strong economic growth and consumer spending. The Personal Consumption Expenditures Price Index the Fed uses for its 2% inflation target was slightly higher than expected at 2.8% in November.

Meanwhile, the Monetary Board will hold its first policy meeting for this year on Feb. 19.

Last week, BSP Governor Eli M. Remolona, Jr. said that another cut remains uncertain, adding that inflation is their primary concern and weaker-than-expected economic growth wouldn’t automatically warrant further policy accommodation.

The BSP has lowered borrowing costs by a total of 200 basis points since its rate cut cycle started in August 2024, bringing the policy rate to 4.5%.

Analysts believe that the central bank could ease further to support domestic demand as inflation remains benign, as governance concerns due to a corruption scandal involving state infrastructure projects have dragged both public and private investments, causing growth to slump to a downward-revised 3.9% in the third quarter of 2025. 

The government will release fourth-quarter and full-year Philippine gross domestic product data on Thursday (Jan. 29).

The economy likely expanded by 4.2% in the fourth quarter, based on a BusinessWorld poll of 18 economists and analysts. This would put full-year growth at 4.8%, below the government’s 5.5%-6.5% target.

Meanwhile, Mr. Limcaoco said they expect to secure the necessary regulatory approvals for the merger of its thrift bank subsidiaries BPI Direct BanKo, Inc., A Savings Bank and Legazpi Savings Bank, Inc. within this year.

He added that the integration of Robinsons Bank Corp. into BPI will likely be completed by June as they finish the rebranding of all remaining Robinsons Bank branches.

BPI shares rose by 40 centavos or 0.35% to end at P115 apiece on Wednesday. — Aaron Michael C. Sy