BPI posts net income of P6.25B for Q1

MAKATI CITY -- Bank of the Philippine Islands ( BPI) posted P6.25 billion in net income for the first quarter of 2018, flat versus the same period last year, and up by 16.4 % quarter on quarter.

Total revenues reached P18.45 billion, higher by 2.7% versus the first quarter of 2017. Net interest income was P12.51 billion, up by 8.9% on account of the expansion in average asset base. Interest income from loans grew by 18.4% year- on- year driven by the improvement in loan yields.

Meanwhile, interest expense tempered the growth in net interest income, partly due to higher DST ( documentary stamp tax) rates on deposits which increased the cost of funds by 5 basis points. Net interest margin ( NIM) widened by 4 basis points yearonyear.

Total loans stood at P1.21 trillion, a growth rate of 17.2% year- onyear driven primarily by corporate loans. Total deposits reached P1.59 trillion, up by 10.4%. The Bank’s current account and savings account ratio ( CASA) stood at 71.6% while the loan- to- deposit ratio ( LDR) settled at 76.2%.

The Bank’s holdings in securities totaled P309.95 billion, up only 2.3% year- on- year. Almost 90% of the securities portfolio was in Hold- to- Collect, and thus less exposed to interest rate risk.

N o n - i n t e r e s t i n - come dropped by 8.1% to P5.94 billion due to lower income from trust BPI, 18

and investment management fees, securities trading and asset sales. Meanwhile, credit card fees, bank commissions, stock brokerage fees, and foreign exchange trading were higher for the period.

Operating expenses totaled P9.75 billion, up by 11.7%, driven mainly by accelerated technology spending. Likewise, manpower costs and premises costs were higher by 9% due to increased headcount and the continued build up of microfinance branches.

In January 2018, the Bank adopted the expected credit loss (ECL) models required under the Philippine Financial Reporting Standards (PFRS 9) as the basis for the provisioning for loan losses. Provision for loan losses for the first quarter 2018 amounted to P785 million, 35.1% lower than the first quarter of 2017.