BPI income up 43 percent to P8.4 billion

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The Bank of the Philippine Islands (BPI) on Thursday reported on Thursday a 43-percent surge in its first quarter net income to P8.4 billion compared to the P5.8 billion registered during the same period last year.

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“With a strong Team BPI, we are confident that BPI will continue to move forward with quality sustainable growth,” said Aurelio Montinola 3rd, the outgoing president and chief executive officer of BPI.

“Will further take the bank to a new level and position BPI as one of the best Asean banks in the near future,” he added.

BPI said that at the end of first quarter, its total resources stood at P940 billion, 16 percent higher year-on-year as deposits grew by the same rate to P748 billion. In addition, the bank was able to increase its assets under management to P758 billion, or 6 percent more than same period last year.

The improvement in net income for the period was driven by the 21-percent growth in total revenues, as the bank took advantage of the favorable market conditions to register securities trading gains.

Net interest income was slightly up, as average asset base expanded by 15 percent. Net yields though, contracted as interest rates continue to decline.

Net loans reached P514 billion, 19 percent better year-on-year. Lending to top corporates was up by 25 percent, while lending to middle market, and small and medium-sized enterprise (SME) segments went up by 17 percent and 14 percent, respectively. Consumer loans also grew by 15 percent. Gross 30 days non-performing loans ratio was down to 2.1 percent from last year’s 2.5 percent. Reserve cover was 129 percent.

The company said that other non-interest income lines likewise improved, particularly service charges and commissions, trust fees, and corporate finance fees.

Operating costs reached P6.6 billion, or 7 percent more year-on-year due to higher regulatory, technology, manpower, and variable costs.

Impairment losses, however was down from last year. BPI’s market capitalization as of end of March 2013 stood at P391 billion. Its Basel 2 Capital Adequacy Ratio (CAR) was 15.1 percent.

Rosalie C. Periabras

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