BPI Q1 net income grows 25.6% to P6.25B


AYALA-led Bank of the Philippine Islands (BPI) said on Thursday its net income in the first quarter of 2017 grew 25.6 percent to P6.3 billion from the P6.25 billion recorded in the previous year driven by growth in net interest and non-interest income.

In a disclosure to the Philippine Stock Exchange (PSE), the bank said total revenues rose 17.6 percent from a year earlier to P17.96 billion.

Net interest income rose to P11.49 billion, higher by 15 percent from the previous year, as asset yields rose along with loan volumes. Non-interest income was up 22.6 percent at P6.46 billion on strong trading gains, service charges, underwriting fees, and income from asset sales.

Operating expenses in the first quarter rose 11 percent to P8.73 billion due to additional manpower, regulatory costs, and spending on operational infrastructure.

BPI’s total loans stood at P1.03 trillion at the end of the first quarter, rising 19.9 percent year-on-year. Its gross nonperforming loan (NPL) ratio fell to 1.5 percent from 1.7 percent previously, while reserve cover increased to 123.7 percent from 114.2 percent.

Total deposits ended at P1.44 trillion, up 10.7 percent year-on-year, with low-cost float deposits comprising 73.9 percent of the total.

Total securities ended at P303.02 billion, largely flat from the previous year. Held-to-maturity securities, at P263.79 billion, continue to account for a significant share of the bank’s invest- ment portfolio.

“While we are pleased with our first quarter financial and operating results, we are very excited about our programs to continually enhance customer service across multiple channels, by increasing safety, innovation, and convenience,” BPI President and CEO Cezar Consing said.

Toward this end, the bank said it continues to invest in processes and information systems, including providing relationship managers with mobility tools for enhanced engagement with clients; reinforcing electronic channels against risks; strengthening Bank Anywhere services, enhancing customer access to electronic channels; offering image-based check clearing services, the first bank in the Philippines to do so; and launching a state-of-the-art Security Operations Center, integrating the physical and technological aspects of the bank’s security network.

At 165 years, BPI is the first bank established in the Philippines and in Southeast Asia.

It is the banking arm of the Ayala Group via umbrella firm Ayala Corp., which is also the holding firm for Manila Water Company Inc., Globe Telecom, Inc., Ayala Land, Inc., Integrated Micro-Electronics, Inc., AC Energy Holdings, Inc., AC Infrastructure Holdings Corp., and LiveIt Investments, among others.


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