AYALA-LED Bank of the Philippine Islands (BPI) said its January to September net income grew 25.6 percent to P17.38 billion from P13.84 billion a year ago driven by strong trading gains and the sustained performance of its core businesses.
The bank said on Wednesday total revenues rose 14.3 percent to P50.42 billion in the nine months, underpinned by strong growth in net interest income and non-interest income., while comprehensive income increased by 40 percent to P18.67 billion.
“I am very pleased with BPI’s strong earnings momentum going into the end of the year. We are doing some very innovative things with both clients and our own organization to build this momentum,” Cezar P. Consing, BPI president and chief executive officer, said in a statement.
Net interest income climbed by 9.1 percent to P31.28 billion, as BPI’s loan books grew by 19.4 percent to P931.12 billion and total deposits jumped by 11.6 percent to P1.32 trillion. Of the total deposits, 75.2 percent were low-cost or current accounts and savings account (CASA) amounting to P931.12 billion.
About 77 percent of its loans were for corporate purposes while retail borrowers accounted for the balance of 23 percent. The bank’s gross 90-day non-performing loans ratio (NPL) dropped to 1.6 percent from 1.8 percent previously.
Non-interest income grew 23.9 percent to P19.14 billion on the back of strong gains in its trading and fee-based incomes derived from core transactional and bancassurance businesses.
BPI highlighted the strength of its business with the top corporations, citing the underwriting and handling gains from the P18.4-billion Pilipinas Shell IPO, and other fundraising activities such as the P20-billion Petron Corp. bond offering, the P19-billion loan facility for SN Aboitiz Power Magat Inc., and the P7.5 billion loan for GN Power Mariveles.
Meanwhile, it said operating expenses grew 11.7 percent to P25.58 billion on non-recurring collective bargaining costs and accelerated IT-related spend.
The bank also continued to raise provisions, up 20.1 percent at P3.95 billion, notwithstanding its stable credit quality. Total assets increased 12.8 percent to P1.59 trillion while total capital expanded 10.1 percent to P165.56 billion.
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 (Intergrated Micro-Electronics Inc.), power generation (AC Energy Holdings inc.), infrastructure (AC Infrastructure Holdings Corp.) and education (LiveIt Investments), among others.