Big banks’ profits jump 17.8% in Q1

Higher interest and non-interest earnings pushed the profits of big banks by 17.8 percent in the first quarter, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).

Earnings of universal and commercial banks amounted to P39.77 billion from January to March, P6.02 billion higher than the P33.74 billion recorded in the same period last year.

The industry is dominated by family-owned conglomerates led by BDO, the Metrobank Group, Bank of the Philippine Islands, Philippine National Bank, Security Bank, China Bank, UnionBank, and Rizal Commercial Banking Corp.

The BSP said the operating income of big banks rose by 18.5 percent to P134.1 billion from P113.1 billion as net interest income climbed by 14.4 percent to P98.04 billion from P85.69 billion.

The banks’ non-interest income surged by 31.6 percent to P36.06 billion in the first three months from P27.41 billion in the same period last year due to higher earnings from trading as well as fees and commissions.

Data showed the industry’s earnings from fees and commission increased by 12.5 percent to P18.76 billion from P16.67 billion, while trading income surged by 87.7 percent to P13.71 billion from P7.3 billion.

Due to the volatile equities and financial markets, banks booked losses amounting to P4.54 billion from the sale or redemption of securities, a complete reversal of the P2.77 billion gains recorded last year.

Gains from foreign exchange transactions jumped by 45.3 percent to P379.57 million from P261.15 million, while foreign exchange profit plunged by 90.6 percent to P164.57 million from P1.75 billion.

The BSP has allowed the moderate and gradual weakening of the peso against the dollar due to the strong demand for the greenback to finance the country’s expanding economy.

From B1 Non-interest expenses of big banks went up 15.5 percent to P85.31 billion in the first quarter from P73.86 billion in the same period last year.

So far, BPI – the third largest bank in terms of assets – led in terms of earnings in the first quarter with P6.25 billion.

BDO – the country’s largest lender in terms of assets – followed as its profit inched up 1.2 percent to P5.9 billion from P5.83 billion, while earnings of Metrobank rose 5.3 percent to P5.9 billion from P5.6 billion.