BPI books dou­ble-digit earn­ings growth

Business World - - BANKING & FINANCE - By Janine Marie D. Soli­man Re­porter

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.

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