The Bank of the Philippine Islands (BPI) saw a 36 percent rise in net profit in the first quarter of 2015 given the improvements in its net interest and non-interest incomes.
In a statement on Tuesday, BPI said its net income from January to March this year rose to P4.9 billion from the P3.6 billion in the same period last year.
This translated to annualized return on equity and return on assets of 13.8 percent and 1.5 percent, respectively, it said.
The bank’s both net interest income and non-interest income showed marked improvements against the same period last year.
Net interest income for the period was P9.43 billion, up 15 percent year-on-year, on account of a 15 percent expansion in average asset base and a slight improvement in spreads.
Non-interest income, on the other hand, was P5.13 billion, up 23 percent year-on-year, mainly due to notable increases in income attributable to the bank’s insurance business, fees and commissions, and securities trading, it said.
Meanwhile, the increase in BPI’s operating expenses was maintained at 8.8 percent, driven by manpower related and regulatory costs, among others.
The bank’s cost-to-income ratio also improved to 50.3 percent from last year’s 54.4 percent.
In addition, BPI said its core lending and deposit businesses sustained strong growth.
Net loans stood at P730 billion, up 14 percent year-on-year as lending to corporations increased by 13 percent and retail loans grew by 16 percent.
Total deposits amounted to P1,159 billion, increasing 17 percent year-on-year.
Despite the growth in average loan balances year-on-year, BPI said it was able to maintain asset quality.
The bank’s gross 90-day non-performing loans ratio was 1.7 percent, down from 1.89 percent in same period last year, while its reserve cover further improved to 111.7 percent.
The bank ended the first quarter with P145.6 billion in capital.
BPI’s consolidated common equity tier 1 capital adequacy ratio (CAR) was 14.81 percent, while total CAR was 15.67 percent.
“We begin the year with strong momentum, and are focused on growing our core lending and fee businesses, while maintaining cost efficiency,” Cezar Consing, BPI’s president and chief executive office said.