BPI books higher net profit in the third quarter

OF THE Philippine Islands (BPI) reported a higher net profit in the third quarter on the back of double-digit net interest income growth.

In a disclosure to the local bourse on Wednesday, the Ayala-led bank said its net income ended at P5.98 billion in the JulySeptember period, 12% higher than the P5.36 billion logged a year ago.

This brought BPI’s net earnings for the first nine months to P17.01 billion, flat from last year.

The lender’s revenues grew by 7.3% to P56.89 billion in the nine months ended September, driven by the 15.1% year-onyear increase in its net interest income, which stood at P40.88 billion.

Meanwhile, BPI’s net interest income in the third quarter grew 21% from a year ago.

Interest income from loans grew 24.2% year-on-year, as the yield on its interest-earning assets improved by 37 basis points (bp).

However, this was partially offset by a 24-bp increase in funding costs due to higher time deposit rates and documentary stamp taxes on deposits following the implementation of the first tranche of the Tax Reform for Acceleration and Inclusion Act this year.

Total loans stood at P1.27 trillion, up 12.9% in a comparable year-ago period, on the back of strong growth in corporate and credit card lending at 13.7% and 22%, respectively.

Total deposits on the other hand was at P1.54 trillion, 2.5% higher from a year ago, with current and savings accounts (CASA) booking a 6.4% growth.

BPI’s CASA ratio was at 74%, while its loan-to-deposit ratio stood at 82.2%. •