BANK OF PHILIPPINE-UNSP ADR Business Summary

Bank of the Philippine Islands (BPI), represented in the U.S. by the unsponsored ADR BPHLY, is a leading universal bank that generates revenue through net interest income from its extensive loan portfolio and non-interest income from service fees, commissions, and investment banking. The bank’s operations are diversified across primary segments including Institutional Banking for large-scale corporate credit, Consumer Banking for retail deposits and personal loans, and specialized subsidiaries such as BPI Wealth for asset management and BPI Direct BanKo for microfinance. Following its 2025 integration of Robinsons Bank, BPI has significantly expanded its retail footprint and digital ecosystem, targeting a 15-million customer base. Within the Philippine market, BPI competes directly with BDO Unibank, Metropolitan Bank & Trust Company (Metrobank), and Land Bank of the Philippines. It maintains a premium market position characterized by superior asset quality, a 4.63% net interest margin as of mid-2026, and a dominant share in the country’s high-margin consumer lending and wealth management sectors. Founded in 1851 as the first bank in Southeast Asia, BPI is currently led by President and CEO Jose Teodoro "TG" Limcaoco, a veteran executive who previously served as CFO of the Ayala Corporation. The bank’s strategic direction is overseen by Chairman Jaime Augusto Zobel de Ayala, a prominent leader of the Ayala Group, which remains the bank's primary institutional shareholder. Key executive leadership includes Eric Roberto M. Luchangco as CFO and Chief Sustainability Officer, and Estelito "Lito" Biacora, who rejoined the bank as Treasurer in July 2026. The board of directors features seasoned industry figures such as Vice Chairman Cezar P. Consing. Supported by the Ayala conglomerate’s extensive ecosystem, BPI’s leadership is recognized for driving a multi-year digital transformation and maintaining a robust capital position, with a Common Equity Tier 1 (CET1) ratio of 14% as of the second quarter of 2026.