The Bank of the Philippine Islands (BPI) reported a 16 percent increase in first-half net income to P9.3 billion from P8 billion a year earlier on the back of steady revenues.
Total revenues rose 11 percent to P29 billion in the January to June period of 2015 from P26 billion in the corresponding half of 2014, with net interest and non-interest incomes both strong during the six-month period, the banking unit of the Ayala conglomerate said.
Net interest income grew 12 percent to P19 billion from P17 billion due to a 15 percent expansion in average assets. Higher incomes were recorded in loan books and deposits, which advanced by 9 percent and 12 percent, respectively.
Non-interest income increased by 11 percent to P10 billion from P9 billion, boosted by securities trading, fees and commissions, and the insurance business, company figures show.
Operating expenses were moderate, inching up 7.5 percent to P15.12 billion from P14.06 billion in the year-ago period, which led to a cost-to-income ratio of 51.9 percent.
‘We remain focused on providing our shareholders with superior risk-adjusted returns through the cycle. At the same time, we continue to build the bank around our clients,” said Cezar P. Consing, BPI president and chief executive officer.
The bank’s total assets improved 9.7 percent to P1.4 trillion in the first six months of 2015, while its common equity tier (CET) 1 ratio stood at 14.3 percent and total capital adequacy ratio at 15.2 percent – well within the Bangko Sentral ng Pilipinas’ (BSP) 10 percent minimum requirement.
Total capital stood at P149.7 billion at end-June. In the six-month period, BPI alloted cash dividends of P0.90 per share – as recently approved by the BSP – payable on September 2.
The bank earlier said it plans to open 40 branches this year, consisting of 20 BPI units and 20 BPI Family Savings Bank branches, at a cost of P3 million to P6 million per outlet.
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.