|
By Maricel E. Burgonio Reporter
Revenues earned from lending and
fee-based businesses enabled Bank of the Philippine Islands to post
higher profits in the first semester.
The country’s second-largest
bank in terms of assets reported in a statement a 24-percent growth
year on year in net income to P5.7 billion in end-June. Total
revenues grew by 18 percent, enabling BPI to surpass for the first
time the more than 15-percent growth it had been registering since
1998.
Noninterest income, or those
gained from trading and other fee-based services, increased by a
hefty 37 percent. It continued to be BPI’s major source of revenue
growth as it contributed 41 percent of total revenue during the
period.
The increase was largely on
account of the 216-percent growth in the pretax income of the
bank’s insurance subsidiaries, income from asset sales, rental
income and gains from foreign-exchange securities trading.
Interest income derived from
BPI’s core business grew 7 percent, notwithstanding narrower net
interest margin, mainly resulting from the 10-percent improvement in
its average asset base.
BPI’s return on equity and
return on average assets grew 17.5 percent and 2 percent from 15.5
percent and 1.8 percent, respectively.
Last year BPI acquired Prudential
Bank, which further increased its assets and branch network.
The bank recorded higher
impairment losses and operating expenses by 32 percent and 16
percent, respectively.
The higher operating costs
included the impact of on-off accruals, settlement of prior period
taxes and higher manpower cost.
BPI also posted double-digit
growth in terms of resources, deposits and loans.
Loans grew by 11 percent, so far
the fastest organically driven growth recorded by the bank in the
last seven years.
The bank’s lending growth
encompasses all sectors, with mortgage growth leading all sectors at
18-percent improvement while small and medium enterprises (SMEs),
middle market posted 13-percent growth.
BPI’s asset quality also
improved, with nonperforming loan ratio going down to 4.2 percent
from 6.1 percent a year ago.
BPI recently completed its fourth
NPL sale transaction worth P3.6 billion with the Bank of America, N.
A.
|
