BPI net profit jumps 21% to R22B in 2016

Bank of the Philippine Islands (BPI) reported a 20.9 percent jump in net income to R22.05 billion last year while comprehensive income was up 30.2 percent to R21.74 billion.

In a disclosure to the Philippine Stock Exchange, BPI said total revenues grew 12.1 percent to R66.55 billion as Net Interest Income rose 9.7 percent to R42.38 billion.

Non-Interest Income climbed 16.7 percent to R24.17 billion on strong gains related to the Bank’s securities portfolio, and higher fees from core transactional and bancassurance businesses.

Growth in BPI’s business was buoyed by the Bank’s strong relationships with corporate clients who drove loan growth across a variety of landmark transactions.

In the energy sector, BPI arranged a R12.5-billion Climate Bond for AboitizPower’s TiwiMakban geothermal plant. BPI also arranged a R15.0-billion retail bond issuance for Ayala Land and the R19.2-billion IPO of Pilipinas Shell, both highly successful issues.

In retail, BPI enhanced customer focus by improving access and relationship management tools. In 2016, the Bangko Sentral ng Pilipinas (BSP) approved licenses to open a total of 44 new branches for both BPI and BPI Family Savings Bank.

BPI President Cezar P. Consing said “we took advantage of 2016’s market conditions to exploit unique opportunities, while gearing for growth in 2017 and beyond.”

He added that, “we led some critical financing transactions for corporate clients, spurring our country’s development in energy and infrastructure. In retail, we have positioned our teams for both stronger volumes and more focused risk management.”

Total loans rose 19.2 percent to R1.04 trillion, with a 79-21 Corporate-Retail mix.

Gross 90-day non-performing loans fell to 1.5 percent, from 1.6 percent while reserve cover rose to 118.7 percent from 110.2 percent. (JAL)