Listed Bank of the Philippine Islands (BPI) registered a hefty increase in its first-half 2013 net income on the back of a significant revenue increase.
In a disclosure to the Philippine Stock Exchange, the banking arm of conglomerate Ayala Corp. 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 registered during the same period in 2012.
The increase in earnings, according to the bank, was a result of a 14-percent increase it recorded in its total revenues coupled even if there was a 6-percent increase in operating expenses.
The increase in BPI’s total revenues was accounted for by a 6-percent increase in net interest income and a 23-percent increase in noninterest income The bank’s return on equity for the first half of 2013 was 23.7 percent.
“Reflective of the robust expansion of the Philippine economy, the bank’s total assets reached P1.02 trillion at the end of the first half of 2013, a 13-percent increase year-on-year,” BPI said in the disclosure. The bank’s loan portfolio also grew by 17 percent year-on-year, well balanced between an 18-percent growth in corporate loans and a 15-percent growth in consumer loans.
“The growth in our loan book is well balanced and funded by a deposit base that is low cost and growing. We shortened the duration of our securities portfolio to reflect the changing market conditions, and our overall business is well poised to take advantage of a rising interest rate environment,” said Cezar Consing, BPI president and chief executive officer.
Asset quality of the bank remains strong, with a gross 30-day nonperforming loan ratio of 2.2 percent. The bank’s growth in assets was supported by a 12-percent increase in deposits, which at the end of the first half of 2013 amounted to P823 billion.
The bank’s capital adequacy ratio as of June 30, 2013, stood at 4.3 percent with a market capitalization at mid-year of P341 billion.