Allied Bank income increases over 5-fold

MANILA, Philippines - Allied Banking Corp. reported a net income of P440.9 million in the first nine months of 2009, or over five times the P81.74 million earnings in the same period last year.

In a statement, the bank said the key driver for the outstanding growth in earnings was the swelling of loans and receivables by P681.272 million or nearly 56 percent higher than the previous year. Allied Bank said this could have been higher if not for the slump in trading and investment securities, which fell 34.68 percent to P319.6 million.

Likewise, deposits with banks and interbank loan receivables fell by over a hundred percent to just P268.42 million.

Meanwhile, total assets stood at P181.98 billion or over 10 percent better than the P164.86 billion a year earlier.

Non-performing loans (NPL) increased by P507 million from January to September to P2.365 billion, increashing the NPL ratio to 2.09 percent.

Total capital funds rose nearly 24 percent to P24.054 billion this year from P19.473 billion in the same period in 2008. This one-time gain was traced to the P2.541-billion increase in minority interest in Allied Commercial Bank (ACB), its subsidiary in mainland China.

“The additional cash investment of $22.5 million and $6.3 million share in the the conversion of ACB’s surplus and undivided profit into equity which reduced Allied Bank’s ownership in ACB from 78.78 percent after considering the 39.41 percent stake of the Philippine National Bank (PNB),” it said.

Total resources reached P164.859 billion or 11.57 percent more than the P159 billion last year.

Capital to risk assets or capital adequacy (CAR) ratio stood at 19.74 percent.