MANILA, Philippines -- Bank of Commerce posted a 14.5-percent increase in net interest income for 2008 to P3.1 billion from P2.7 billion in 2007.

In a report to shareholders on Tuesday, BanCom president Raul B. de Mesa said the increase outpaced the rise in operating expenses, which was 7.1 percent higher than the 2007 levels.

Loans and receivables reached P55.4 billion, up 55.3 percent from the 2007 level. Total deposits rose by 27.2 percent to P77.9 billion. The growth in volume can be attributed to the bank?s conscious efforts to strengthen business relationships with identified markets, both for asset expansion and deposit generation, De Mesa said. Total qualifying capital stood at P8.3 billion, with a capital adequacy ratio of 10.7 percent.

?These financial results underscored the bank?s efforts to manage interest margins and contain administrative expenses,? De Mesa said.

Like all businesses, the bank was not spared by the worst global recession in decades as BanCom?s 2008 net income declined by 48.79 percent to P263 million primarily due to markdowns on investments in structured products.

?The institution undertook initiatives to strengthen the balance sheet through additional provisions,? De Mesa said.