BPI profit jumps 29.5% in 9 months

Ayala-led Bank of the Philippine Islands (BPI) booked a 29.5 percent jump in net income to P22.03 billion in the first nine months from P17.01 billion in the same period last year after a strong performance in the third quarter.

In a disclosure to the Philippine Stock Exchange, BPI said its revenues surged by 24.8 percent to P71 billion from January to September compared to P56.89 billion in the same period last year.

BPI’s net interest income went up by 19.8 percent to P48.66 billion as net interest margin widened by 26 basis points on higher asset yields which rose by 89 basis points, partially offset by higher cost of funds.

The bank’s loan book increased by 8.2 percent to P1.37 trillion in the first nine months from P1.27 trillion in the same period last year due to higher consumer and corporate loans.

Within the consumer segment, the 168-year old bank said credit card loan growth continued its upward trajectory, climbing 24.6 percent year-on-year.

BPI’s deposit base inched up by five percent to P1.62 trillion from P1.54 trillion, translating to a CASA deposit ratio of 69.1 percent and a loan-to-deposit ratio of 84.7 percent.

The bank’s non-interest income reached P22.34 billion in the nine-month period, a 37.5 percent increase from last year’s P16.01 billion, driven by higher securities trading gains and fee-based income.

Its total securities position grew by 17.3 percent to P392.99 billion from P335.11 billion, while fees, commissions, and other income rose by 19.1 percent primarily from higher fee revenues from credit cards, transaction banking, electronic channels, deposit products, and insurance.

BPI said its operating expenses went up by 15.6 percent to P37.09 billion in the first nine months from P32.08 billion in the same period last year

Provision for losses for the nine-month period, including specific reserves for Hanjin, was at P4.58 billion, bringing the bank’s loss coverage ratio to 102.7 percent.

The bank’s non-performing loan (NPL) ratio was at 1.81 percent, flat compared to the prior year.