BPI books double-digit earnings growth

AYALA-LED Bank of the Philippine Islands (BPI) booked a double-digit growth in its bottom line in the first three months of the year on the back of an expansion in its net interest income during the period.

In a disclosure to the local bourse on Thursday, the bank reported that its net income reached P6.25 billion in the first quarter, 25.6% higher from the P4.98 billion recorded in the same period in 2016.

“The main drivers of strong net income for the first quarter are mainly the strong performance in net interest income which grew by almost 15% year on year and this is driven by a strong growth in our average balances for loans driven by strong growth in our corporate loan book this year compared to last year,” BPI Senior Vice-President and Chief Financial Officer Maria Theresa M. Javier told reporters in a media briefing on Thursday after the bank’s annual stockholders’ meeting.

The bank’s net interest income in the January to March period climbed 15% to P11.49 billion from P10 billion the year prior on the back of an increase in asset yields and loan volumes.

BPI’s total loans stood at P1.03 trillion during the period, up 19.9% compared to the P861.22 billion recorded in the previous year. Meanwhile, its gross 90-day non-performing loans (NPLs) slid to 1.5% from 1.7% while reserve cover jumped to 123.7% from 114.2% last year.

The bank’s total deposits also rose to P1.44 trillion in the first quarter, 10.7% higher than the P1.30 trillion booked in the same period in 2016.

“Another main driver of net income is the strong non- interest income growth for the first quarter driven mainly by trading gains from sales, securities, as well as asset sales,” Ms. Javier said.

The bank’s non- interest income came in at P6.46 billion during the period, soaring by 22.6% from the P5.27 billion recorded last year.

Its total revenues also climbed to P17.96 billion at end-March, higher by 17.6% from P15.27 billion in the first quarter of 2016.

BPI’s total assets likewise grew to P1.73 trillion in the first quarter, 12.4% higher from 2016’s P1.54 trillion, the bank reported.