MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) sustained its growth momentum after its earnings picked up by more than 20 percent to P25 billion in the first semester of the year.
In a regulatory filing, BPI said net income for the January to June period increased 23 percent to P25.1 billion as revenues improved almost 14 percent to P65.6 billion.
“Drivers of the strong financial performance were average asset base expansion, margin growth, and lower provisions,” the 171-year-old bank said.
According to the bank, net interest income grew by 27.4 percent to P50.1 billion on the back of a 9.2 percent expansion in average asset base, coupled with a 56- basis point increase in net interest margin to 4.03 percent.
However, BPI said this was tempered by the 15.4 percent decrease in non-interest income to P15.5 billion due to the property sale gain last year.
Further, the bank reported a 21.4 percent jump in total operating expenses to P31.4 billion on spending for structural and one-time salary increases, continued investments in digitalization programs, and various marketing campaigns, rewards, and other selling expenses.
BPI’s loan book grew by 10.5 percent to P1.7 trillion in the first half, fueled by the eight percent increase in corporate lending, a 42.7 percent jump in credit card loans, and a 20.4 percent rise in auto loans.
The bank recorded a non-performing loan (NPL) ratio of 1.88 percent and NPL coverage ratio of 167.44 percent.
Total deposits also recorded a 7.6 percent rise to P2.1 trillion. Likewise, the bank’s assets grew by 8.9 percent to P2.7 trillion, with return on assets at 1.92 percent.
BPI was named Asia’s Best Bank for Corporate Responsibility and Best Bank in the Philippines in this year’s Euromoney Awards for Excellence.
BPI was recognized for its “excellent numbers,” highlighting the 65.8 percent growth in its net income last year and the bank’s commitment to championing digitalization and sustainability.
BPI’s corporate social responsibility programs anchored on the pursuit of better financial wellness culture were also lauded.