BPI sets early redemption of P5-B notes

MANILA, Philippines - Ayala-led Bank of the Philippine Islands (BPI) has secured approval from the Bangko Sentral ng Pilipinas for its planned call option on its P5-billion Lower Tier 2 notes.

In a disclosure to the Philippine Stock Exchange, BPI said it will exercise its option to call or redeem all its outstanding P5 billion Lower Tier 2 notes on the optional redemption date of Dec. 13, 2013.

The notes  were issued on Dec. 12, 2008, with original maturity date of Dec. 12, 2018.

In the first half this year, BPI posted a 27-percent increase in net income to P12 billion from P9.4 billion  in the same period in 2012.

The bank attributed the improvement in earnings to the 14-percent increase in total revenues, coupled with a relatively modest six-percent rise in operating expenses.

Main driver of growth in revenues were the six percent improvement in net interest income and a 23-percent increase in non-interest income.

Gains were recorded in all major types of non-interest income, with fees and commissions, foreign exchange, securities trading, insurance income and other operating income growing by 17 percent, 24 percent, 14 percent, 70 percent, and 34 percent, respectively over the same period a year ago.

The bank’s return on equity  stood at 23.7 percent.

Reflective of the robust expansion of the Philippine economy, the bank’s total assets reached P1.02 trillion at the end of the first half of 2013, a 13-percent increase year-on-year.

The bank’s loan portfolio grew 17 percent year-on-year, well balanced between an 18-percent growth in corporate loans and a 15-percent growth in consumer loans.

Asset quality remains strong, with a gross 30-day non-performing loan ratio of 2.2 percent.

Loan loss reserves covered 117 percent of the gross amount of 30-day non-performing loans.