Ayala-LED Bank of the Philippine Islands reported a 19-percent year-on-year rise in its nine-month net profit to P15.8 billion on a double-digit increase in net interest and non-interest earnings.
This translated to a return on equity of 20.5 percent and a return on assets of 2.2 percent, BPI disclosed to the Philippine Stock Exchange on Wednesday.
“We are very pleased with the momentum across our corporate and consumer franchises, and are well positioned to take advantage of changing market conditions,” BPI president and chief executive officer Cezar Consing said.
Total revenue went up by 12 percent from a year ago which was attributed to the improvement in net interest income, brought about by the 16-percent expansion in average asset base.
BPI grew its loan book by 15 percent year-on-year to P549 billion as it reported strong lending to all segments.
Non-interest income was also up by 15 percent year-on-year, driven by increases in fees and commissions, income from insurance operations, foreign exchange trading and other operating income.
Against year-ago levels, operating expenses grew by 6.7 percent year-on-year, with increases coming largely from technology-related expenses and other variable costs. Impairment losses declined by 15.6 percent from a year ago.
On the funding side, BPI’s total deposits reached P889 billion, up by 27 percent, attributed to the growth in savings and demand deposits, which increased by nearly 40 percent.
In terms of asset quality, BPI’s non-performing loan ratio declined to 2.1 percent versus last year’s 2.3 percent. Reserve cover was 119 percent.
BPI’s capital adequacy ratio (CAR) stood at 16.1 percent. Counting only core or tier 1 CAR, this ratio was at 14.7 percent.
At the end of September, BPI’s market capitalization was P343 billion, allowing the bank to retain its position as the Philippines’ most valuable bank. Moody’s Investor Service recently granted the bank its second investment grade rating, following an earlier upgrade to investment grade from Fitch Ratings.
In the meantime, BPI has received approval of the Bangko Sentral ng Pilipinas for its plan to exercise its option to retire P5 billion worth of debt notes ahead of maturity.
This would allow BPI to avoid paying higher interest rates if these notes were not retired during the optional redemption period. Doris C. Dumlao