{"id":333284,"date":"2025-07-30T00:55:50","date_gmt":"2025-07-29T16:55:50","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=333284"},"modified":"2025-07-30T00:55:51","modified_gmt":"2025-07-29T16:55:51","slug":"stock-in-focus-bank-of-the-philippine-islands-bpi-30-july-2025-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-bank-of-the-philippine-islands-bpi-30-july-2025-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Bank of the Philippine Islands (BPI) – 30 July 2025 by RCBC 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>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>30 July 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 150.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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With the possibility of further interest rate cuts, we expect the paying capacity of consumers to strengthen, allowing BPI to maintain its non-performing loans (NPL) ratio at manageable levels. These numbers reaffirm our optimistic outlook on BPI. Reiterate BUY.<\/p>\n\n\n\n

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

Target consumer loans hit<\/strong><\/p>\n\n\n\n

Barely two years since the milestone merger took effect, Bank of the Philippine Islands (BPI) has already achieved its 30% target non-institutional share in its total loan portfolio. Note that BPI only had 21%-23% coming from non-institutional loans, while Robinsons Bank Corporation (RBC) had 42% before their merger took effect on January 1, 2024. BPI’s goal now is to grow both segments in tandem, which we believe is a prudent strategy to ensure asset quality. Seeing its non-performing loan (NPL) ratio drop again by one basis point (bp) quarter-on-qquarter (q\/q) to 2.25% in 2Q 2025 was a relief. The previous quarter (1Q 2025) showed an uptick in NPL by 13 bps q\/q, which made us a bit wary.<\/p>\n\n\n\n

Earnings recap<\/strong><\/p>\n\n\n\n

BPI reported a net income of PHP33.0 billion for the 1st half (1H) of 2025, 7.8% higher year-on-year (y\/y), within our expectations, primarily driven by a strong 16.2% growth in net interest income (NII). Average earning asset base expanded by 8.3%, while net interest margin (NIM) rose 32 basis points to 4.58%. Non-interest income increased by 7.4%. Meanwhile, its NPL ratio stood at 2.25%, with NPL coverage at 97.1%. Gross loans and total deposits grew by 14% and 6.5% y\/y, respectively. In 2Q25 alone, BPI\u2019s net income increased 6.6% y\/y, as NII surged 17% y\/y.<\/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>