BPI posts 43% net income hike

MANILA, Philippines - Ayala-controlled Bank of the Philippine Islands (BPI) posted a 43 percent increase in its net income to P8.4 billion in the first quarter of 2013 from P5.8 billion in the same period in 2012.

In a disclosure to the Philippine Stock Exchange, BPI said the income growth was driven by improvement in trading gains and higher deposits for the period.

At the end of first quarter, BPI’s total resources stood at P940 billion, 16 percent higher year-on-year as deposits grew by the same rate to P748 billion.

In addition, the bank was able to increase its assets under management to P758 billion or six percent more than the same period last year.

Net loans hit P514 billion, 19 percent better year-on-year. Lending to top corporates was up by 25 percent, while the middle market and SME segments went up by 17 and 14 percent, respectively. Consumer loans also grew by 15 percent.

Gross 30 days NPL ratio was down to 2.1 percent from last year’s 2.5 percent. Reserve cover was 129 percent.

The improvement in net income for the period was driven by the 21 percent growth in total revenues as the bank took advantage of the favorable market condition to register securities trading gains.

Net interest income was slightly up, as average asset base expanded by 15 percent.

Net yields though, contracted as interest rates continued to decline.

Other non-interest income lines likewise improved, particularly service charges and commissions, trust fees, and corporate finance fees.

Operating costs reached P6.6 billion or seven percent more year-on-year due to higher regulatory, technology, manpower, and variable costs. Impairment losses, however, was down from last year.

BPI’s market capitalization as of end of March 2013 stood at P391 billion.

Its Basel 2 Capital Adequacy Ratio (CAR) was at 15.1 percent.

In its recently held stockholders’ meeting, leadership of BPI was turned over to its new President and CEO Cezar Consing.

Outgoing president and CEO Aurelio R. Montinola III commented, “With a strong Team BPI, we are confident that BPI will continue to move forward with quality sustainable growth. I firmly believe that my successor, a competent and experienced professional with many years in the international banking arena, will further take the bank to a new level and position BPI as one of the best Asean banks in the near future.”