BPI expects steady income growth in H2

Ayala-led Bank of the Philippine Islands (BPI) sees income growth holding steady in the second half, as strong consumer demand and resilient corporate activity continue to fuel expansion despite downward pressure from lower interest rates.

- By KEISHA TA-ASAN

BPI chief finance officer and chief sustainability officer Eric Luchangco said the bank expects the performance in the second half to mirror the first half, during which loans grew by 14 percent and net interest margins (NIMs) improved by 34 basis points year-on-year.

"We believe all the factors exist for that to continue into the end of the year," Luchangco said.

"We've already seen the impact of interest rate cuts, but our margins remain buoyant because of how we're managing growth," Luchangco added.

Luchangco acknowledged that the easing cycle of the Bangko Sentral ng Pilipinas has begun to compress margins, but said the bank's approach to portfolio expansion has helped mitigate the effect.

"We're still seeing NIMs well-supported," he said.