MANILA, Philippines--Bank of the Philippine Islands (BPI) posted a 38-percent growth in January-to-September net profit to P7.3 billion from a year ago on a double-digit expansion in interest and non-interest earnings.
For the third-quarter alone, the country’s most valuable bank posted a net income of P2.1 billion, 35-percent higher than the level in the same period last year. This included an additional loan-loss provisioning of P100 million made for typhoon-related accounts and higher manpower costs.
The increase in manpower costs was due to higher retirement fund expense as well as collective bargaining agreement-related payments.
Total revenues for the nine-month period grew 16 percent, supported by a 14-percent jump in net interest income and 20-percent growth in non-interest income, which included fee-based and treasury gains.
The growth in net interest income was fueled by an 8-percent expansion in average asset base as well as a widening in spreads between cost of funding and the lending rate.
Average loans and deposits grew 8 percent and 7 percent, respectively. Loan yields improved by 27 basis points alongside a decline in funding costs.
Meanwhile, operating costs were up 6 percent due to manpower and premises-related expense. Impairment losses reached P2.1 billion for the nine-month period, with additional provisions set up for potential credit losses from clients victimized by Tropical Storm “Ondoy.”
Total resources rose 9 percent to P665 billion from a year ago. Deposits increased 4 percent to P515 billion, while assets held in trust surged 46 percent to P439 billion.
Average loans were up 8 percent but outstanding net loans declined by 3 percent due to weaker corporate demand. Middle-market loans, on the other hand, increased by a modest 4 percent, while lending to small and medium enterprises also managed to grow by 3 percent.
Consumer loans or lending to households sustained a growth rate of 14 percent, with credit card and retail mortgage businesses growing by 20 percent and 15 percent, respectively.
