BPI kicks up profit 25% to P13.7 B in six months

MANILA, Philippines — Earnings of Ayala-led Bank of the Philippine Islands (BPI) jumped by 24.6 percent to P13.74 billion in the first half from P11.03 billion in the same period last year after a strong performance in the second quarter.

In a disclosure to the Philippine Stocks Exchange, the country’s fourth largest lender in terms of assets said its total revenues increased by 23.3 percent to P45.9 billion from January to June compared to P37.22 billion in the same period last year.

BPI’s net interest income went up by 23.5 percent to P32.36 billion from P26.21 billion as net interest margin widened by 38 basis points after a 103 basis points rise in asset yields.

Its non-interest income rose by 21.5 percent to P13.54 billion from P11.82 billion, driven by increases in securities trading gains and fee-based income.

The bank said its securities position stood at P404.22 billion, or 33.4 percent year-on-year.

On the other hand, fees, commissions and other income increased by 16.1 percent across a broad range of businesses including credit cards, deposit products, insurance, transaction banking, leasing, retail loans and electronic channels.

BPI said operating expenses grew by 14.4 percent to P24.28 billion from P21.22 billion on continued technology spend, the continued build-out of new microfinance branches, and one-time manpower expenses related to the recently concluded collective bargaining agreements.

Cost-to-income ratio for the first semester was at 52.9 percent, an improvement from 57 percent in the first half of 2018.

The Ayala-led bank’s loan portfolio booked a double digit increase of 10.8 percent to P1.35 trillion in the first half from P1.22 trillion in the same period last year.

The increase was attributed to the 11.6 percent increase in corporate loans and 10.3 percent rise in consumer loans. Credit card loans jumped by 25.8 percent.

BPI’s deposit base expended by eight percent to P1.66 trillion from P1.53 trillion resulting in a loan-to-deposit ratio of 81.7 percent.

BPI said provision for loan losses for the first semester, which included specific reserves for ailing Hanjin, was at P3.48 billion, bringing the bank’s loss coverage ratio to 100.7 percent.

Its non-performing loan (NPL) ratio was steady at 1.86 percent.

For the second quarter, BPI said its net income jumped by 46.8 percent to P7.01 billion.

BPI’s total assets grew by 12.3 percent to P2.13 trillion, with return on assets at 1.34 percent.

Total equity reached P259.88 billion, providing a strong capital position to deliver future growth, with an indicative common equity tier 1 ratio of 15.55 percent and capital adequacy ratio of 16.44 percent.