The 2003 earnings was already net of provisions for probable losses amounting to P309 million.
Allied Bank president and chief executive officer Reynaldo A. Maclang said net interest income as a result of higher revenue from loans and lower funding cost were the main driver of the income growth.
Other contributors to income growth were better yields from trading gains and from other sources.
Maclang disclosed that the bank’s consumer loans business grew by 42 percent. The bank rationalized its operating expenses resulting in the improvement of its efficiency ratio of 66 percent as against the previous 73 percent.
Part of the bank’s other income was derived from fees generated by foreign remittance and the new treasury product. It was launched last year and provide clients with alternative investment in Treasury bills and notes, dollar-linked notes and global bonds.
"For 2004, the bank is expecting a 30-percent increase in profitability through more improved net spread, additional revenues from fee-based sources and better efficiency," Maclang said.
Profitability will be enhanced through further technology and systems upgrade, bancassurance, more remittance partnerships/tie-up, extensive marketing strategies and availability of its products and services to its clients nationwide through its extensive branch network.
More revenues are expected from its treasury business as the bank recently received recognition fro the Bureau of Treasury as one of the top 10 best performing government securities eligible dealers in the primary market.
The bank is also set to increase capital through the Tier 2 capital issuance to further strengthen capital adequacy ratio (CAR) from 13 percent to 18 percent, with 10 percent as the minimum hurdle.