BPI nets P12B in 1st half of 2013

MANILA, Philippines–Ayala-led Bank of the Philippine Islands grew its first-semester net profit by 27 percent year-on-year to P12 billion on higher interest earnings, trading gains and fee-based income.
This brought the bank’s return on equity for the first half to 23.7 percent, the bank disclosed to the Philippine Stock Exchange on Wednesday. The country’s most valuable bank in terms of market capitalization also breached the P1-trillion mark in terms of total resources.
“BPI’s financial results for the first half of the year are strong. The growth in our loan book is well balanced and funded by a deposit base that is low cost and growing. We shortened the duration of our securities portfolio to reflect the changing market conditions, and our over-all business is well poised to take advantage of a rising interest rate environment,” said BPI president Cezar Consing.
The bank boosted revenues by 14 percent in the first six months, outpacing the 6-percent rise in operating expenses.
BPI saw a 6 percent increase in net interest income and a 23 percent improvement in non-interest income over their respective levels last year. Fees and commissions were up by 17 percent while foreign exchange and securities trading gains jumped by 24 percent and 14 percent, respectively.
The bank likewise grew its insurance income by 70 percent over a year ago while other operating income went up by 34 percent.
BPI grew its lending book by 17 percent year-on-year, fueled by an 18 percent growth in corporate loans and a 15 percent growth in consumer loans. Asset quality remains strong, with a gross 30-day non- performing loan ratio at 2.2 percent.
Reflective of the robust expansion of the Philippine economy, the bank’s total assets reached P1.02 trillion at the end of the first half, up by 13 percent increase year-on-year.