BPI income up 15%

MANILA, Philippines - Bank of the Philippine Islands (BPI) posted a 15 percent increase in its net income last year to P18.8 billion, from P16.3 billion in 2012, the Ayala-led bank said in a disclosure to the stock exchange.

BPI said total resources as of end-2013 stood at P1.2 trillion, 21 percent higher than the previous year as a result of solid performance in the bank’s diversified businesses.

Deposits grew a robust 23 percent to P989 billion, driven by savings and demand deposits, which grew more than 40 percent year-on-year.

BPI’s net loan portfolio increased 21 percent to P635 billion as both the corporate and consumer market segments delivered double-digit growth of 23 percent and 13 percent, respectively.

Asset quality further improved, with the bank’s 90-day gross non-performing loan (NPL) ratio closing at 1.80 percent, as compared to 2.09 percent in end-2012.

The bank’s reserve-to-NPL ratio ended the year at 105 percent. Impairment losses stood at P2.6 billion, compared with P2.9 billion in 2012.

However, total securities portfolio declined eight percent year-on-year, from P205 billion to P188 billion, with combined available-for-sale (AFS) and held-for trading (HFT) positions declining 28 percent, from P128 billion to P92 billion, reflecting its risk posture in the context of the changing interest rate environment.

On the revenue side, net interest income grew 10 percent as the bank’s average asset base grew P151 billion, or 18 percent. Non-interest income also increased, by 11 percent, mainly due to higher fees and commissions and other operating income.

Its operating expenses grew seven percent, with increases largely attributable to regulatory costs, technology and occupancy-related costs.

The bank recently concluded a P25-billion stock rights offer which was strongly oversubscribed, reflecting strong support and confidence from its shareholders.

Proceeds from the rights offer will support strategic growth initiatives and further strengthen the Bank’s capital adequacy, amid new Basel III regulation and positive economic prospects in the Philippines.

BPI president and CEO Cezar Consing said they expect their income to remain strong this year.