Bank of Commerce Surges Ahead with 31% Profit Growth in H1 2025

San Miguel Corporation (SMC) affiliate Bank of Commerce (BankCom) posted an unaudited net income of P1.86 billion as of 30 June 2025, up 31% year-on-year primarily due to strong revenue growth. This translated to a return on equity (ROE) and return on asset (ROA) of 11% and 1.39%, respectively.

The robust performance was underpinned by sustained growth across core revenue streams, driven by net interest income, gains from trading securities, and foreign exchange transactions.

The bank’s strategy of improving its revenue streams and prudent spending resulted in a lower cost-to-income ratio of 59%.

1H 2025 FINANCIAL HIGHLIGHTS (YoY):

• Net income up 31% to P1.86 billion vs P1.42 billion in 1H 2024, mainly due to core business growth. 
• Net interest income reached P5.15 billion, 14% higher than P4.53 billion in same period last year. 
• Non-interest income at P912.52 million, P214.15 million higher than P698.37 million prior year. 
• Gross revenue rose to P6.06 billion, up 16% compared to the P5.23 billion in 2024. 
• ROE stood at 11%. 
• NIM of 4.27%. 
• Cost to income ratio of 59%. 
• Total Loans and Receivables grew by 5% to P143.58 billion  
• Gross non-performing loans (NPL) ratio at 1.34% 
• Net non-performing loan (NPL) ratio of 0.53%. 
• Capital levels remained strong with a Total CAR of 17.30 %.

2Q 2025 FINANCIAL HIGHLIGHT (QoQ):

• Net income as of 2Q 2025 was P993.91 million, up 53% from the P649.30 million in the same 
• quarter last year and 15% higher from the 1Q2025’s P866.79 million. 
• Net interest income grew by 16% to P2.66 billion from the P2.28 billion in previous year and 7% higher versus March 2025.  
• Non-interest income surged to P409.43 million, 36% higher than the P300.03 million in the same quarter last year.  
• Gross revenue of P3.07 billion was 2% higher than the last quarter’s P2.99 billion on account of higher interest income and foreign exchange gains. 
• Operating expenses excluding provisions as of 2Q 2025 posted P1.81 billion, 10% higher than the P1.65 billion in the same period in 2024 and 1% up from 1Q 2025.

KEY EVENT/S: 

• April 4, 2025 – hailed as one of the Top 5 Corporate Issue Managers/Arrangers in the banking category by the Philippine Dealing System Holdings Corp. and Subsidiaries (PDS Group) 
• April 24, 2025 – awarded the grand winner of the Accelerate Your Savings Part 1 Promo
• May 15, 2025 – Credit Management Association of the Philippines (CMAP)’s Most Outstanding Member for 2025 
• May 27, 2025 – held the Annual Stockholders’ Meeting and declared a 79% increase in cash dividends 

Revenues

BankCom‘s notable performance in the first semester of 2025, was fueled by strong revenue growth across key business segments, mainly higher net interest income and trading and foreign exchange gains.

Net interest income rose to P5.15 billion, marking a 14% increase from P4.53 billion recorded in 2024. The upward trajectory was due to the expansion in earning assets, primarily from loans, financial assets at fair value, and other investment securities. The higher growth in revenues from earning assets than interest bearing liabilities translated to an improvement in net interest margin (NIM) at 4.27%.

Other income was significantly up by 31% to P912.52 million, on account of the significant surge in trading and foreign exchange gains as well as higher ROPA related revenues.

Operating expenses, excluding provision for credit and impairment losses, amounted to P3.60 billion, up by 11% from P3.25 billion in 2024. The expansion in operating expenses was driven mainly by the bank’s continued investment in human capital and technology as well as a higher volume of transactions. 

Compensation expenses grew by 17% to P1.48 billion, driven by an expanded workforce and enhanced retention initiatives. Depreciation and amortization amounted to P321.34 million, 9% higher compared to P295.30 million in 2024 due to higher depreciation of leasehold rights and improvements. Amortization of software costs increased to P65.71 million, almost 2x the P33.84 million last year due to various software services availed. Service fees and commissions rose by 10% to P193.39 million, while taxes and licenses increased by 7% to P593.45 million—both reflecting higher business activity.

BankCom’s strong financial results underscore its strategic focus on growth, operational efficiency, and prudent risk management.

Balance Sheet

As of 30 June 2025, total assets stood at P271.53 billion, translating to return on assets (ROA) of 1.39%.  

Total loans and receivables, which comprise almost 53% of total assets, expanded by 5% to P143.58 billion from P136.51 billion in 2024. The growth was broad-based across all lending segments, resulting in a healthy loan-to-deposit ratio of 71%. Asset quality remained sound, with gross non-performing loans (NPL) at 1.34% and net NPL at 0.53%, slightly up from 1.25% and 0.49%, respectively, at the end of 2024.

Total deposits were moderately lower by 4% to P203.82 billion from the P212.01 billion in 2024 due to seasonality in the use of larger business accounts. The deposit mix includes P185.39 billion in current account and savings account (CASA) deposits, P13.40 billion in time deposits, and P5.03 billion in long-term negotiable certificates of deposit (LTNCD).

Bonds payable surged to P24.41 billion, nearly 4x the previous year’s level of P6.53 billion, following the successful issuance of the dual-tranche fixed rate bond on February 19, 2025. P6.57 billion of these bonds will mature in November 2025. 

BankCom’s capital funds continued to grow reaching P34.46 billion, reflecting a 4% increase from the P33.23 billion in 2024.

The bank’s capital adequacy ratio (CAR) remained strong at 17.30%, well above the regulatory minimum of 10.0%.