Economic and Governance

Ethical conduct is not separate from how we build strength. It is the foundation on which trust is earned and sustained. We embed integrity, transparency, and accountability into decisions at every level, ensuring that our performance creates value that endures well beyond any single year.  

We maintain a zero-tolerance policy toward corruption, bribery, fraud, extortion, collusion, and money laundering. As a result of these controls, the Bank did not face any legal proceedings related to unethical conduct during the reporting period.

How we govern responsibly

Our governance framework is designed to make ethics part of everyday work. Our Board of Directors approves all key policies, including the Code of Ethics, and delegates clear responsibilities across management. These principles are introduced through New Employee Orientation training, making every employee a steward of trust from day one. 

We treat regulatory compliance as a core part of how we protect our stakeholders and sustain long-term value. We monitor developments across banking, financial reporting, data privacy, and sustainability regulations, and translate these requirements into policies, controls, and operating practices. 

We have begun transitioning to SEC Memorandum Circular No. 16, Series of 2025, which adopts the PFRS Sustainability Disclosures. Our existing governance structures and ESRM Framework provide a strong foundation for phased compliance. 

Environmental, social, and climate risks are not peripheral concerns. They affect credit quality, operations, reputation, and long-term value creation. We manage them as part of our core risk framework through the ESRM Framework, embedding sustainability considerations into how we govern, allocate capital, and execute strategy. 

The ESRM Framework integrates into Credit Risk Management, Operational Risk Management, and our Sustainable Finance Framework, aligned with BSP Circular Nos. 1085, 1128, 1149, and 1187, and SEC MC No. 16, Series of 2025. 

As banking grows more digital, we strengthen how we govern technology-related risks to protect our customers, maintain system reliability, and support responsible innovation. We treat AI as a strategic capability, not a passing trend, one that helps us serve better, operate more efficiently, and stay competitive. 

Generative AI now supports document summarization, drafting, coding assistance, and knowledge retrieval across teams. These tools improve speed and insight, but they also introduce risks. We address these by embedding AI oversight within our enterprise risk management framework, guided by the AI Steering Council (AI Steerco) and a structured AI Risk Management Framework. 

How We Oversee AI Across the Bank 

Our AI Risk Management Framework 

We remained resilient amid changing economic conditions and continued to support the growth of the Philippine economy. Our commitment goes beyond navigating uncertainty. It is about helping our customers, communities, and partners move forward with confidence. 

In 2025, we generated PHP 192.46 billion in direct economic value as the Parent Bank, supported by sustained loan growth, solid trading income, and disciplined cost management. We distributed PHP 163.31 billion to stakeholders and invested PHP 117 million in community development programs focused on education, health, and disaster response. 

We approach taxes as part of our responsibility as a good corporate citizen. In 2025, we recognized PHP 24.27 billion in income tax provision, reflecting our strong performance and continued support for the public infrastructure and social programs that drive inclusive growth. 

We improve digital processes, build strategic partnerships, and strengthen our risk frameworks to focus on what matters most to our clients and communities. Guided by this conviction, we invest in technologies and collaborations that enable secure, intuitive, and reliable banking while supporting operational excellence and inclusive growth.  

We are progressing toward the implementation of an ESG Data Management System designed to improve data quality, consistency, and decision-usefulness across the Bank. 

We manage our supply chain with the same discipline and integrity that guide our core banking operations. Our procurement covers technology and IT services, office and branch operations, professional and outsourced services, and facilities management, with our supply chain largely domestic and international sourcing limited to specialized technology solutions. 

We embed environmental, social, and governance considerations into how we design, deliver, and manage our products and services. ESG integration goes beyond our own environmental footprint. We apply these principles in retail offerings and financing activities so clients can make decisions that align with their objectives and support a more resilient and inclusive economy.