Allied Bank earnings more than double in first half

MANILA, Philippines - Allied Banking Corp. posted a first semester net income of P371 million, more than twice the P175 million recorded in the same period in 2008, the bank said in a statement.

Net interest income swelled to P1.713 billion or 47.1 percent more from P1.164 billion in the first semester of 2008, due to the 33 percent increase in loans and receivables.

Allied Bank operates 312 local and international branches and offices.

It is set to merge with the Philippine National Bank (PNB) as soon as certain regulatory requirements are fulfilled, specifically after it disposes of its holdings in Oceanic Bank in the US.

The merger, with PNB emerging as the surviving entity, would result in the fourth largest bank in the Philippines in terms of branch network and assets. The combined branch network will reach 607, with PNB accounting for 324 branches and 283 from Allied Bank.

Allied Bank said its deposits with banks and interbank loans receivables grew 35 percent to P212.6 million while foreign exchange gains expanded to P169 million, or 477 percent, from P29 million last year.

Also, trading and securities gains went up to P169 million, or 156 percent, from a loss of P299 million previously.

Non-performing loans (NPL) increased P512 million or 26 percent from P1.928 billion to P2.44 billion. Thus, its NPL ratio stood at a 2.51 percent.

Capital adequacy ratio (CAR) stood at a healthy 17.59 percent.

Total assets expanded 4.5 percent to P183 billion as of end-June 2009, from P175 billion in end-2008.

“The bank has commitments for capital expenditures for investments in IT-related projects relocation and renovation of branch premises, acquisition and major repairs of. Expected sources of funds will come from sale of foreclosed assets, excess cash inflows and income stream,” Allied Bank said.