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BPI reports 2012 net profit of P16.3 B

MANILA, Philippines—Bank of the Philippine Islands ended 2012 with a record-high net profit of P16.3 billion on the back of higher interest earnings and extraordinary trading gains.

The full-year 2012 profit performance marked a 27-percent increase from the previous year and exceeded the P16.07 billion consensus forecast for the period. This translated to a return on equity of 17.5 percent and a return on assets of 1.9 percent for BPI, the country’s most profitable bank and the most valuable based on stock market capitalization.

In a press statement, BPI president and chief executive officer Aurelio R. Montinola III said: “2012 was a banner year for BPI, as we generated record profits and exceeded our return on equity goal of 16 percent.

“We will aim for 12 to 15 percent loan growth in 2013. However, given significant securities trading gains last year and an even lower interest rate regime this year, our challenge for 2013 will be to deliver a meaningful earnings growth after a record 2012 performance.”

The bank grew its net loan book by 16 percent to P527 billion last year. A higher loan volume compensated for the slight decline in net interest margins.

Net interest income rose by 6 percent as the average asset base went up by P64 billion while net interest margin posted a 10-basis point contraction following the Bangko Sentral ng Pilipinas’ monetary easing last year and the removal of interest paid on reserve requirement deposits kept with the central bank.

Non-interest income was 25 percent better mainly due to higher trading gains on securities sold, other operating income as well as other fees and commissions.

BPI reported strong business volumes and revenue growth on the back of a robust macroeconomic backdrop.  The Philippine domestic economy expanded by 6.6 percent in 2012.

The bank’s total resources reached P985 billion at yearend, 17 percent higher than the previous year. Deposit base expanded by 18 percent to P802 billion while assets under management ended the year 11 percent higher at P743 billion. BPI’s total intermediated funds thus stood at P1.5 trillion in 2012.

On the asset side, the 16 percent rise in net loan portfolio was supported by double-digit growths across core markets: 17 percent for both the consumer segment and the middle market/small and medium enterprises, and 12 percent for the top tier corporates. Asset quality continued to improve with its 30-day non-performing loan ratio easing to 1.46 percent from the previous year’s 1.87 percent.

Operating expense growth was managed at 6 percent coming from technology and occupancy-related expenses and regulatory costs. Impairment losses were set aside worth P2.9 billion due to additional provisions for non-credit related items and foreclosed assets.

BPI’s market capitalization stood at P338 billion as of end 2012. It remains adequately capitalized with a capital adequacy ratio (CAR) of 14.2 percent based on Basel 2 CAR framework. Counting only the core or tier 1 capital, BPI’s CAR stood at 12.8 percent.

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Tags: Doris C. Dumlao

  • Iggy Ramirez

    I couldn’t wait to return home to pull out all of my money from BDO and transfer them to BPI.

    BDO sucks.

  • ztefertilizerscam10

    The Bank Investments Of Different Dioceses

    Diocese / Church Foundation Company # Shares Owned Rank in Top 100 Total Investment Value

    ROMAN CATHOLIC ARCHBISHOP OF MANILA Bank of the Philippine Islands (BPI) 222,843,681 4th PHP12.724 Billion

    ROMAN CATHOLIC ARCHBISHOP OF MLA (REAL CASA DE MISERICORDIA) Bank of the Philippine Islands (BPI) 41,408,841 8th PHP2.364 Billion

    ROMAN CATHOLIC ARCHBISHOP OF MANILA (HOSPITAL DE SAN JUAN DE DIOS) Bank of the Philippine Islands (BPI) 22,072,182 13th PHP1.26 Billion

    ROMAN CATHOLIC ARCHBISHOP OF MLA (HOSPICIO DE SAN JOSE) Bank of the Philippine Islands (BPI) 6,016,624 15th PHP343.55 Million

    ROMAN CATHOLIC ARCHBISHOP OF MLA (HOSP DE SA JUAN DE DIOS) Bank of the Philippine Islands (BPI) 4,285,572 17th PHP244.71 Million

    ROMAN CATHOLIC ARCHBISHOP OF MLA (MAYORDOMIA DELA CATEDRAL) Bank of the Philippine Islands (BPI) 2,664,266 21st PHP152.13 Million

    ROMAN CATHOLIC ARCHBISHOP OF MLA (ST. PAUL`S HOSPITAL) Bank of the Philippine Islands (BPI) 1,772,418 26th PHP101.21 Million

    CARMEL OF THE DIVINE INFANT JESUS OF PRAGUE, INC. Bank of the Philippine Islands (BPI) 726,819 49th PHP41.50 Million

    EL SUPERIOR DE LA CORPORACION FILIPINA DE PADRES AGUSTINOS RECOLETOS Bank of the Philippine Islands (BPI) 551,382 60th PHP31.48 Million
    ROMAN CATHOLIC ARCHBISHOP OF JARO Bank of the Philippine Islands (BPI) 491,385 64th PHP28.06 Million

    • Iggy Ramirez

      I don’t know about the other bishopses but I can certainly say for sure that the money in the Bank for Hospicio de San Jose doesn’t deserve to be put in this light.

      Operation Expenses every month could break your skull. Electricity bills are amounting to P800,000. Water bills amount to P200,000. Food for Orphans, the aged, the sick, and the staff amount to P1,100,000. Medicines for infants, the mental, the old, the children, amount to P800,000. Salaries for staff amount to P550,000. Repairs and Maintenance amount to P250,000.

      I know you just want to expose some bad things but you also have to dig a little bit deeper to know where some of these money really go after uncovering an amazing piece of information.

      • MahalKobayanko

        You CAN’T force me NOT to donate money to the Catholic Church. If I donate money to charitable organizations like the Catholic Church, it’s my VOLUNTARY ACT. In the first place, i was NOT FORCE to give my hard earned money. In fact, tithing is voluntary in the Catholic Church not like in other religious groups that you are obliged to give it. Besides, the Catholic Church has lots of programs to help the less fortunate of our society like te one cited above by Mr. Iggy Ramirez. 

        Are you jealous because some people are generous to the Church? Read the Parable of the Workers in the Vineyard, Matthew 20:1-13. Don’t I have the right to do what I want with my own money? Or are you envious because I am generous?’ (v.13)Well, ztefertilizerscam10, if you can give me your bank account or the account of your church, I can donate money to you. That’s a voluntary action.

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