The Bank of the Philippine Islands (BPI), the banking arm of the Ayala Group, wrapped up 2013 with a 15-percent increase in its profit, seeing its income grow to P18.8 billion from the P16.3 billion registered in 2012.
On the revenue side, net interest income of the company grew by 10 percent as the bank’s average asset base grew by P151 billion, or 18 percent, while its noninterest income grew by 11 percent, mainly from higher fees and commissions, and other operating income.
“We are pleased with our results for 2013, and are going into 2014 with very strong momentum,” said Cezar Consing, BPI president and chief executive officer.
As of the end of 2013, total resources of the bank stood at P1.2 trillion, or 21 percent higher than that of the previous year, as a result of solid performance in the bank’s diversified businesses.
Meanwhile, its deposits grew by 23 percent to P989 billion, driven by savings and demand deposits.
BPI’s net loan portfolio also increased by 21 percent to P635 billion, as both the corporate and consumer market segments delivered double-digit growth of 23 percent and 13 percent, respectively.
“Asset quality further improved, with the bank’s 90-day gross NPL [nonperforming loan]ratio closing at 1.80 percent, as compared to 2.09 percent as of year-end 2012, while the bank’s reserve-to-NPL ratio ended the year at 105 percent. Impairment losses stood at P2.6 billion, compared with P2.9 billion in 2012,” BPI said.
BPI recently announced the conclusion of its P25-billion stock rights offer, which was oversubscribed as of the end of the offer period on January 30.
Proceeds from the rights offer will be used to support the bank’s strategic growth initiatives, and further strengthen its capital adequacy, amid new Basel III regulation and positive economic prospects in the Philippines.
The shares to be issued pursuant to the rights offer are scheduled for listing on February 10.
On a pro-forma basis, completion of the rights offer will result in a Tier 1 capital adequacy ratio for BPI of approximately 18.6 percent, based on the bank’s capitalization at the end of 2013.