Bank of Commerce income down 11%

MANILA, Philippines —  San Miguel-led Bank of Commerce’s net income went down by 11 percent to P1.42 billion in the first half from P1.59 billion  a year ago as the lender continued investing more in its people and technology.

In a statement, the bank said it allocated more resources for its human resources and technology modernization to sustain its growth momentum over recent years.

“The bank saw strategic hirings and an improved retention program, which led to an increase in compensation costs,” it said.

On the other hand, investments in technology include a new core banking system, the upgrade of its cash management system and a new fraud management system.

“The bank believes that sustained investments in these areas will propel it to long-term profit growth,” it added.

Bank of Commerce booked an eight-percent growth in gross revenue to P5.23 billion from January to June compared to P4.85 billion in the same period last year.

“Topline revenues were mainly driven by expansion across all lending segments resulting from a higher loan and securities portfolio. Meanwhile, corporate loans grew on account of program lending and loans to the San Miguel Corp. ecosystem,” the bank said.

The lender’s net interest income grew by 15 percent to P4.53 billion from P3.95 billion a year ago as the net interest margin improved to 4.53 percent in end-June.

Non-interest income stood at P698.37 million, 23 percent lower than the P901.20 million a year before, mainly due to the timing of its investment banking and acquired assets sales.

Other income decreased by 23 percent to P698.37 million due to seasonality in fees and commissions, lower foreign exchange and trading gains, and lower gains on real and other properties acquired.

The bank’s operating expenses grew by 19 percent to P3.25 billion in the first half from P2.74 billion last year due to increases in manpower count and improved retention program.