Moody's Ratings affirmed the Baa2/P-2 long-term and short-term deposit ratings for Bank of the Philippine Islands (BPI). The credit agency maintained a stable outlook for the lender.
BPI reported a resilient return on assets of 1.83%. Moody's expects net interest margins to expand as the bank grows its retail portfolio. The affirmation reflects BPI's solid asset quality and ample liquidity buffers.
Moody's flagged weakening asset quality due to high-risk retail growth and corporate loan challenges. BPI's problem loan ratio reached 3.4% by the end of 2025. Several corporate loans became problematic in the first quarter of 2026 for reasons unrelated to the Middle East conflict.