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Business

BPI profit up 32% to P3.5B in first semester

- Rocel Felix -
The Bank of the Philippine Islands (BPI) posted a strong revenue growth in the first semester, pushing its net income 32 percent higher to P3.5 billion, from P2.6 billion during the same period in 2003.

In a disclosure to the Philippine Stock Exchange (PSE), the country’s second biggest bank said that aside from higher revenues, its net interest income was up 23 percent due to improved spreads.

Non-interest income also went up 3.1 percent with notable gains from the insurance, business, rentals, asset management and miscellaneous income. This offset the lower trading gains, income from asset sales and service charges during the period.

Total resources at end-June stood at P430 billion, with both deposits and gross loans expanding by four percent to P337 billion and P213 billion, respectively. The bank’s market capitalization stood at P97 billion as against a book value of P54 billion.

During the second quarter alone, BPI posted a net income of P1.9 billion, up by 46 percent compared to P1.3 billion during the same period last year.

From April to June, total revenues went up 21 percent to P5.7 billion, driven primarily by a 30-percent surge in net interest income.

The bank attributed this to wider net margins and higher asset base, with a modest seven-percent increase in non-interest income.

BPI also reported slightly higher operating expenses due to last year’s non-recurring input value-added-tax.

Earlier this month, BPI signed a memorandum of agreement with Morgan Stanley Emerging Markets Inc. for the sale of P8.6 billion in non-performing loans (NPL), the first under the Special Purpose Asset Vehicle (SPAV) law.

The Ayala controlled bank was named Best Bank in the Philippines by Finance Asia and was also recognized as the Best Bank in cash management and foreign exchange in recent polls by Asiamoney.

vuukle comment

BANK

BANK OF THE PHILIPPINE ISLANDS

BEST BANK

BILLION

FINANCE ASIA

FROM APRIL

INCOME

MORGAN STANLEY EMERGING MARKETS INC

PHILIPPINE STOCK EXCHANGE

SPECIAL PURPOSE ASSET VEHICLE

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