BPI expects loan demand to rebound this year

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January 31, 2026 | 12:00am

MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) is looking at a stronger performance this year, banking on a recovery in borrowing activity as global and domestic uncertainties begin to ease and business sentiment improves.

BPI president and CEO Jose Teodoro Limcaoco said the Ayala-led lender expects to outperform last year’s results, with net income seen growing in the high single digits and loan growth tracking the mid-teens, supported largely by consumer lending.

“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 on the borrowing side, I think, as we try to get past some of the global tensions and some local noise,” Limcaoco told reporters in an interview.

“But as far as we’re concerned, the demand should come back and my personal belief is this malaise from the top corporates can turn very quickly,” he added.

Earlier, Limcaoco said the bank is targeting to grow its loan book by 12 to 13 percent this year, the same goal it set for 2025. BPI ended the first nine months of last year with gross loans rising by 13.3 percent to P2.4 trillion.

He said hesitation among borrowers is largely tied to uncertainty, particularly when it comes to large capital spending decisions.

“When you’re going to make a big investment, a big capital expenditure, you want confidence. Things are clear both globally and domestically and my view, domestic, I think it’s uncalled for,” Limcaoco said.

“Yes, there are issues. But I don’t think it should hamper people from continuing. Now there are certain issues globally that yes, you could be concerned about, but there’s nothing we can do about that,” he added.

To help bolster funding, BPI has started offering its P5-billion peso-denominated Supporting Individuals Grow, Lead, and Achieve or SIGLA Bonds, priced at 5.405 percent per year. The offer began on Jan. 26 and will run until Feb. 4. The minimum investment is set at P500,000, in increments of P100,000.

BPI posted a net income of P50.5 billion from January to September 2025, up by 5.2 percent from P48 billion a year ago, as higher revenues offset increased expenses and loan-loss provisions.

The 174-year-old bank said its performance was anchored on sustained loan growth and stronger non-interest income streams, particularly from credit cards, wealth management and trading.