BankCom to tap bond market anew

San Miguel-led Bank of Commerce (BankCom) is set to issue additional bonds this year to fund future growth, as it aims to maintain a cautious lending approach amid high interest rates and geopolitical instability. During an investment conference, BankCom CFO Antonio Laquindanum announced plans for another bond issuance in the second half of the year, following the lender's largest-ever bond offering of P18 billion in 2025.

Laquindanum highlighted that these transactions would bolster the bank's funding profile, diversify its liabilities, and support future growth initiatives. The planned fundraising coincides with BankCom's target to achieve some loan growth by year-end, despite a cautious approach to lending due to weak borrower appetite driven by high borrowing costs.

The bank has deliberately slowed lending to prioritize profitability and returns over balance sheet expansion. While BankCom's loan and investment book contracted slightly in the first half due to increased liquidity buffers, its net interest margin (NIM) reached a record 4.68% in the same period. BankCom aims to capitalize on the San Miguel Corp. ecosystem, having onboarded more than 3,500 ecosystem accounts by June, representing nearly 60% of its expanded target market of 6,000 clients.

The bank plans to convert these accounts into borrowers and users of additional products, such as cash management and trade facilities. Additionally, BankCom is expanding its branch-lite network to reach areas with SMC ecosystem clients outside its existing footprint, with plans to upgrade these smaller units into full-service branches as demand grows.

BankCom reported a 13% increase in net income to P2.11 billion and a record return on equity of 11.56% for the first half.