August 14, 2025San Miguel Corporation (SMC) affiliate Bank of Commerce (BankCom) posted an unaudited net income of Php1.86 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 Php1.86 billion vs Php1.42 billion in 1H 2024, mainly due to core business growth Net interest income reached Php5.15 billion, 14% higher than Php4.53 billion in same period last year Non-interest income at Php912.52 million, Php214.15 million higher than Php698.37 million prior year Gross revenue rose to Php6.06 billion, up 16% compared to the Php5.23 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 Php143.58 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 Php993.91 million, up 53% from the Php649.30 million in the same quarter last year and 15% higher from the 1Q2025’s Php866.79 million. Net interest income grew by 16% to Php2.66 billion from the Php2.28 billion in previous year and 7% higher versus March 2025. Non-interest income surged to Php409.43 million, 36% higher than the Php300.03 million in the same quarter last year. Gross revenue of Php3.07 billion was 2% higher than the last quarter’s Php2.99 billion on account of higher interest income and foreign exchange gains. Operating expenses excluding provisions as of 2Q 2025 posted Php1.81 billion, 10% higher than the Php1.65 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 Php5.15 billion, marking a 14% increase from Php4.53 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 ₽912.52 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 Php3.60 billion, up by 11% from Php3.25 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 Php1.48 billion, driven by an expanded workforce and enhanced retention initiatives. Depreciation and amortization amounted to Php321.34 million, 9% higher compared to Php295.30 million in 2024 due to higher depreciation of leasehold rights and improvements. Amortization of software costs increased to Php65.71 million, almost 2x the Php33.84 million last year due to various software services availed. Service fees and commissions rose by 10% to Php193.39 million, while taxes and licenses increased by 7% to Php593.45 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 Php271.53 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 Php143.58 billion from Php136.51 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 Php203.82 billion from the Php212.01 billion in 2024 due to seasonality in the use of larger business accounts. The deposit mix includes Php185.39 billion in current account and savings account (CASA) deposits, Php13.40 billion in time deposits, and Php5.03 billion in long-term negotiable certificates of deposit (LTNCD). Bonds payable surged to Php24.41 billion, nearly 4x the previous year’s level of Php6.53 billion, following the successful issuance of the dual-tranche fixed rate bond on February 19, 2025. Php6.57 billion of these bonds will mature in November 2025. BankCom’s capital funds continued to grow reaching Php34.46 billion, reflecting a 4% increase from the Php33.23 billion in 2024. The bank’s capital adequacy ratio (CAR) remained strong at 17.30%, well above the regulatory minimum of 10.0%. About BankCom An affiliate of San Miguel Corporation (SMC) since 2008, Bank of Commerce is a publicly-listed universal bank focused on helping its clients, communities and conglomerate partners by delivering the best choice of financial services harnessing the strengths of the SMC Group. Bank of Commerce is identified by its logo bearing the SMC symbols of escudo and cloverleaf, and by the trademark license short name “BankCom” granted by the Intellectual Property Office (IPO) in 2020. BankCom traces its origins to the Overseas Bank of Manila which opened in Binondo, Manila in 1963. BankCom posted a net income of ₽3.02 billion as of 31 December 2024, up by 8% from Php2.80 billion in 2023, marking its highest profit level since becoming an SMC affiliate in 2008. The upward trend continued into the first quarter of 2025, reflecting sustained profit growth through March. As of 30 June 2025, BankCom maintains a network of 140 branches and 272 automated teller machines (ATMs) including Cash Kiosks strategically located nationwide.