BANK of Commerce (BankCom), the banking arm of conglomerate San Miguel Corp., posted a 13-percent increase in net income in the first quarter (Q1) of 2026, supported by stronger core lending activity and higher income.
In a statement on Wednesday, BankCom said unaudited net income reached P976.19 million as of March 31, 2026, up from P866.79 million in the same period last year.
The bank attributed the growth to resilient core revenues, particularly net interest income and foreign exchange gains from client transactions, amid heightened market volatility linked to geopolitical tensions in the Middle East.
Net interest income rose 20 percent to P2.98 billion, driven by higher average levels of loans and receivables, while gross revenues increased 10 percent to P3.29 billion.
BankCom also reported improved profitability metrics, with return on equity at 10.74 percent and return on assets at 1.32 percent, reflecting stronger earnings generation efficiency.
Asset quality remained stable, with the gross nonperforming loan ratio improving to 1.21 percent from 1.33 percent at end-2025, while the net nonperforming loan ratio eased to 0.56 percent.
The bank said its total capital adequacy ratio stood at 16.06 percent, well above regulatory requirements, underscoring a strong capital position.
On a quarter-on-quarter basis, net income increased 23 percent from P794.79 million in the fourth quarter of 2025, supported by higher net interest income and steady loan expansion.
Total operating expenses rose 11 percent year on year to P1.99 billion, reflecting continued investments in personnel, branch expansion and technology upgrades.
Noninterest income, however, declined 39 percent to P304.51 million, mainly due to trading losses amid market volatility, partly offset by gains from real estate-owned asset sales and higher FX-related transactions.
BankCom said total assets reached P306.11 billion, up 7 percent from a year earlier, while deposits expanded 8 percent to P241.88 billion, driven by growth in current and savings accounts.
The company shares climbed P0.20 or 1.85 percent, to close at P11.00 each on Wednesday.
