BPI nine-month profit reaches P15.8 billion

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The Bank of the Philippine Islands (BPI), the banking arm of Ayala Corp., saw a 19-percent increase in its nine-month net income, closing the period with a P15.8-billion profit versus the P13.2 billion it earned in the same period last year.

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This, according to the listed bank, resulted in a return on equity of 20.5 percent and a return on assets of 2.2 percent.

Total revenues of BPI grew by 12 percent due from the improvement in net interest income brought about by the 16-percent expansion in average asset base, and the 15-percent increase in non-interest income.

Against same period last year, operating expenses of the company grew by 6.7 percent with increases coming largely from technology-related expenses and other variable costs, while impairment losses decreased by 15.6 percent.

Also, the bank’s total deposits reached P889 billion, up by 27 percent, with increases driven by growth in savings and demand deposits, which grew by nearly 40 percent. BPI’s loan portfolio expanded by 15 percent to P549 billion, as lending to all segments continued to be strong, while gross 30 days nonperforming loans (NPL) ratio continued to improve, registering at 2.1 percent versus last year’s 2.3 percent.

In general, BPI remains well capitalized with a capital adequacy ratio (CAR) of 16.1 percent and a Tier 1 CAR of 14.7 percent. At end of September, BPI’s market capitalization was P343 billion.

During the first half of the year, BPI registered a quite hefty increase in its net income after it grew its revenue significantly as well. BPI then reported that it posted a net income of P12 billion in the first half of this year, a 27-percent increase over the P9.4 billion it made during the same period in 2012.

Meanwhile, in a separate filing with the Philippine Stock Exchange on Wednesday, BPI said it has obtained the approval of the Bangko Sentral ng Pilipinas to exercise its option to call or redeem all of its outstanding P5-billion lower Tier 2 notes on the optional redemption date of December 13, 2013.

BPI’s P5-billion lower Tier 2 notes were issued on December 12, 2008, with original maturity date of December 12, 2018.

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