BPI posts modest profit gain

Ayala- led Bank of the Philippine Islands ( BPI) managed to eke out income growth amid the volatile global environment brought about by the interest rate liftoff in the US and the economic slowdown in China.

BPI president and CEO Cezar Consing reported the bank’s net income inched up 1.1 percent to P18.23 billion while revenues rose 6.4 percent to P59.36 billion.

“Last year, we worked to strike a balance between growth and profitability. Amidst volatile markets, we focused on margins and fees,” Consing said.

Interest income grew 11 percent to P38.64 billion while non- interest earnings slipped 1.2 percent to P20.72 billion.

Amid the volatile global financial markets, BPO booked a P2.86 billion gain from foreign exchange and securities trading.

Operating expenses, however, went up 6.4 percent to P31.87 billion last year.

The bank’s cost- to- income ratio remained at 53.7 percent while its return on assets (ROA) and return on equity (ROE) slipped to 1.3 percent and 12.3 percent, respectively.

Total loans grew 9.1 percent to P872.86 billion last year. About 78 percent of the bank’s total loan portfolio went to corporate clients while 22 percent were extended to retail clients.

Amid the steady rise in the bank’s loan portfolio, BPI’s gross 90-day nonperforming loans (NPLs) remained low at 1.6 percent while its loan loss cover stood at 110.2 percent.

On the other hand, the bank’s total deposits increased 8.5 percent to P1.28 trillion last year.

“Both total loans and total deposits grew to record levels in 2015,” BPI said.

Consing said the 164 year-old bank continues to focus on its clients.

“We organized the bank around clients, recognizing that they are key to our success,” he added.

The bank’s total assets increased 4.6 percent to P1.52 trillion. Investment securities rose 6.7 percent to P295.18 billion. Bulk or P244.81 billion of the bank’s investment securities was mostly held-to-maturity.

BPI emerged as the country’s third largest bank in terms of assets as of the end of September, next to BDO Unibank of retail and banking magnate Henry Sy and Metrobank Group of taipan George Ty.

BPI said its total capital went up 4.3 percent to P150.28 billion, translating to a capital adequacy ratio of 13.6 percent last year.