BPI bottom line rises 18% in H1

MANILA, Philippines - Ayala-led Bank of the Philippine Islands (BPI) continued to book double-digit growth in earnings expanding 18 percent in the first half of the year on the back of higher interest and non-interest income including trading gains on securities.

The bank reported yesterday it recorded a net income of P9.48 billion from January to June this year, P1.45 billion higher compared to P8.03 billion in the same period last year.

BPI’s total revenues went up 11.9 percent to P29.12 billion in the first half of the year from P26.02 billion in the same period last year.

The bank’s net interest income rose 12.1 percent to P18.89 billion from P16.85 billion on the back of higher interest earnings from loans and advances, held-to-maturity securities, available-for-sale securities, and deposits with the Bangko Sentral ng Pilipinas (BSP) as well as other banks.

On the other hand, non-interest income of the bank grew 11.5 percent to P10.23 billion from P9.17 billion due to higher income from fees and commissions, trading gain on securities, and insurance operations.

Trading gains on securities more than doubled to P1.67 billion in the first six months of the year from P799.5 million in the same period last year as the bank took profits on winning positions when rates declined in January and May.

Likewise, the bank reported a 12.1 percent increase in expenses to P21.62 billion from P19.28 billion due to higher spending for compensation and fringe benefits as well as for occupancy and equipment-related expenditures.

In the first half of the year, BPI booked a return on average equity of 13 percent in end June this year, from 12.9 percent in end June last year, while return on average assets remained steady at 1.4 percent.

BPI president and CEO Cezar Consing said the bank intends to sustain the strong performance as it remains focused on shareholders and clients.

“We remain focused on providing our shareholders with superior risk-adjusted returns through the cycle. At the same time, we continue to build the bank around our clients. This is a journey, and we believe we do well when our clients do well,” Consing said in a statement.

BPI’s total assets increased 9.7 percent to P1.4 trillion in end June this year. The bank’s total deposits grew 12 percent while loans expanded by nine percent.

The bank’s asset quality remains strong after its gross 90-day non-performing loan ratio improved to 1.77 percent from 1.85 percent while loan loss cover was maintained at 108 percent.