BPI income jumps to P6.25 billion

By Mary Grace Padin

MANILA, Philippines - Ayala-led Bank of the Philippine Islands (BPI) reported yesterday a strong growth in net income for the first quarter, driven mainly by an increase in the bank’s loan portfolio and trading gains from securities and assets.

In a disclosure to the Philippine Stock Exchange (PSE), BPI said its net income rose 25.6 percent to P6.25 billion from P4.98 billion in the same period last year.

Total revenue reached P17.96 billion, up 17.6 percent from the P15.27 billion in 2016.

“The main drivers are mainly our strong performance in net interest income, which grew by almost 15 percent year-on-year, and this was driven by a strong growth in the average balances for loans...in our corporate loan book,” Maria Theresa Javier, BPI senior vice president, said.

“The other is the strong non-interest income growth driven mainly by trading gains from sale of securities, as well as asset sales,” she added.

Net interest income grew 15 percent to P11.4 billion, while non-interest income jumped 22.6 percent to P6.46 billion.

The bank posted P1.03 trillion in loans in the first quarter, up 19.9 percent year-on-year. The ratio of non-performing loans improved to 1.5 percent from 1.7 percent.

Deposits also rose 10.7 percent to P1.44 trillion with low cost float deposits taking up the bulk.

Operating expenses, meanwhile, also grew 11.2 percent to P8.73 billion because of additional manpower and regulatory costs, and increased spending on operational infrastructure.

This brought BPI’s cost-to-income ratio to 48.6 percent, an improvement from the 51.4 percent recorded in 2016. Return on assets and equities both increased to 1.5 percent and 15 percent, respectively.

BPI said it is increasing its investment in tools and processes to enhance client experience and safeguard customer transactions. These initiatives include the launching of a state-of-the-art Security Operations Center and improving services for small and medium enterprises, among others.

Meanwhile, BPI president and chief executive officer Cezar Consing said the bank is gearing up for the ASEAN financial integration and strengthening its position so that it can meet the requirements of a qualified ASEAN bank when it happens.

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