BANK of Commerce (BankCom), an affiliate of San Miguel Corp. (SMC), posted a 13-percent increase in net income to P2.11 billion in the first half from P1.86 billion a year earlier, driven by stronger core banking operations and foreign exchange gains.
In a disclosure on Monday, the bank said return on equity also touched a record 11.56 percent post-initial public offering, with return on assets also reaching a record 1.47 percent.
Net interest margin improved to 4.68 percent, said to be the highest level recorded since San Miguel acquired the bank.
Net interest income jumped 19 percent to P6.11 billion from P5.15 billion a year earlier, supported by higher average daily levels of lending and investment securities, as well as lower funding costs.
BankCom said the stronger earnings reflected continued growth across its revenue streams despite market and geopolitical uncertainties.
Gross revenue from January to June 2026 increased 14 percent to P6.9 billion from P6.06 billion in the same period last year.
Other income reached P785.38 million, helped by gains from sales of real and other properties acquired (up 18 percent year-on-year to P340.69 million) and foreign exchange gains from client-related transactions, which increased six percent to P109.58 million.
BankCom said these revenue sources, along with fee-generating activities, helped offset trading losses caused by market volatility related to geopolitical developments in the Middle East.
Asset quality remained healthy, with provisions for credit and impairment losses declining 13 percent to P7.98 million from the previous year.
Operating expenses, excluding provisions, rose 13 percent to P4.05 billion from P3.6 billion, reflecting investments in human capital, branch-lite units, technology and other business expansion initiatives.
As of end-June, BankCom's total assets stood at P287.51 billion, while total loans and receivables reached P153.56 billion.
Total deposits amounted to P223.64 billion, of which P202.59 billion were current and savings account deposits and P21.05 billion were time deposits, giving the bank a low-cost deposit mix of 91 percent.
Gross nonperforming loans (NPL) stood at 1.43 percent, while net NPL was 0.63 percent.
BankCom’s capital remained strong at P36.37 billion at the end of the first half, despite its dividend payout on July 15. Capital adequacy stood at 17.07 percent, well above the regulatory minimum of 10 percent.
For the second quarter alone, net income increased 14 percent year on year to P1.13 billion from P993.91 million, and was up 16 percent versus the P976.19 million recorded in the first quarter.
Second-quarter net interest income increased 18 percent to P3.13 billion, while other income rose 17 percent to P480.88 million.
Gross revenue for the second quarter climbed 18 percent year-on-year to P3.61 billion and was 10 percent higher than the P3.29 billion recorded in the first quarter.
Bank of Commerce shares slipped P0.02, or 0.19 percent, to close at P10.48 each on Monday.
