Retail teams position for stronger volumes, more focused risk management
The Ayala group’s Bank of the Philippine Islands (BPI) said its 2016 net income surged 20.9 percent to P22.1 billion from P18.37 billion in 2015 on the back of strong growth in net interest and non-interest income.
Total revenues for the past year rose 12.1 percent to P66.55 billion, with net interest income up 9.7 percent at P42.38 billion and non-interest income 16.7 percent higher at P24.17 billion, the bank said on Thursday.
The rise in non-interest income was driven by strong gains in its securities portfolio and higher fees from its core transactional and bancassurance businesses.
“We took advantage of 2016’s market conditions to exploit unique opportunities, while gearing for growth in 2017 and beyond. We led some critical financing transactions for corporate clients, spurring our country’s development in energy and infrastructure. In retail, we have positioned our teams for both stronger volumes and more focused risk management,” Cezar Consing, BPI president and chief executive officer, said in a statement.
BPI’s operating expenses reached P34.94 billion, up 9.6 percent, driven mainly by spending on general infrastructure, as well as collective bargaining costs. Provisions stood at P4.80 billion, up 20.7 percent.
Its cost-to-income ratio was 52.5 percent, slightly lower than the previous year’s 53.7 percent while its return on assets and return on equities were at 1.4 percent and 13.8 percent, respectively.
The bank’s total loans stood at P1.04 trillion, up 19.2 percent, with a 79-21 corporate-retail mix. BPI’s gross 90-day non-performing loans ratio fell to 1.5 percent, from 1.6 percent previously.
BPI said its reserve cover rose to 118.7 percent from 110.2 percent.
Its total deposits stood at P1.43 trillion, up 12.2 percent year-on-year, with the current account/savings account ratio at 73.5 percent.
The bank’s total securities stood at P307.39 billion, up 4.1 percent, while total assets ended at P1.73 trillion, up 13.8 percent from 2015 levels.
Total capital was at P165.13 billion, up 9.9 percent. Its capital adequacy ratio and common equity tier 1 ended at 13 percent and 12.1 percent, respectively.
BPI is the banking arm of the Ayala Group via umbrella firm Ayala Corp., which also holds other businesses such as water (Manila Water Company Inc.), telecoms (Globe Telecom Inc.), property (Ayala Land Inc.), semiconductors (Integrated Micro-Electronics Inc.), power generation (AC Energy Holdings inc.), infrastructure (AC Infrastructure Holdings Corp.) and education (LiveIt Investments), among others.