{"id":332362,"date":"2025-04-30T00:01:00","date_gmt":"2025-04-29T16:01:00","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=332362"},"modified":"2025-04-29T23:50:01","modified_gmt":"2025-04-29T15:50:01","slug":"stock-in-focus-bank-of-the-philippine-islands-bpi-30-apr-2025-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-bank-of-the-philippine-islands-bpi-30-apr-2025-by-ap-securities\/","title":{"rendered":"Stock in Focus: Bank of the Philippine Islands (BPI) – 30 Apr 2025 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>BPI<\/td><\/tr>
Company Name<\/strong><\/td>Bank of the Philippine Islands<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>30 Apr 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 150.20<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Moving forward, we expect BPI to continue generating quality earnings, driven by a pick-up in consumer loans as rates start coming down, coupled with the 200 bps reserve requirement ratio (RRR) cut that took effect this March. As such, we maintain our BUY rating for the stock with a Target Price of P150.20.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

Earnings in-line with expectations<\/strong><\/p>\n\n\n\n

BPI delivered earnings of P16.6-Billion for the 1st quarter (1Q) of 2025, marking 9% year-on-year (YoY) growth, and coming in within our estimates of P16.9-Billion. Revenue growth of 13.1% YoY was attributable to a substantial increase of Net Interest Income (+15.3%) as BPI\u2019s average earnings asset base rose by 8.6%, which was further supplemented by a 30bps expansion in net interest margins (NIM). Non-interest income on the other hand also posted decent growth of 6.3% YoY on higher credit card fees and transaction-based service charges. We note that revenue\u2019s sustained growth was more than enough to offset the impact brought by increases in both OPEX and provision for losses.<\/p>\n\n\n\n

Shifting to higher gears<\/strong><\/p>\n\n\n\n

On the expenses side, opex rose by 12.7% YoY, which was driven mainly by increase in manpower cost due to higher headcount following the merger with Robinsons Bank. Technology expenses also contributed to higher opex as BPI continues to push for greater digital exposure. Nevertheless, cost-to-income ratio improved by 16bps to end up at 45.4%. On the asset quality side, NPL increased by 13bps as a result of the company\u2019s continued efforts to expand its non-institutional loan book and NPL cover declined by 36ppts YoY basis to end up at 100.11%. We do not see cause for concern as NPL cover is still above 100%, meaning there is still more than enough provisions to cover potential loan losses.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>