BPI’s H1 net profit up 16% to P9.3B

AYALA-led Bank of the Philippine Islands grew its net profit in the first semester by 16 percent year-on-year to P9.3 billion on a double-digit rise in both interest income and non-interest earnings.

For the second quarter alone, BPI’s net profit was flat at P4.43 billion compared to the same period last year.

In a press statement on Tuesday, Southeast Asia’s oldest bank said this six-month performance translated to an annualized return on equity of 13 percent and return on assets of 1.4 percent.

“We remain focused on providing our shareholders with superior risk-adjusted returns through the cycle,” said BPI president and chief executive officer Cezar Consing. “At the same time, we continue to build the bank around our clients.This is a journey, and we believe we do well when our clients do well.”

Net interest income ended the semester at P19 billion, 12 percent higher year-on-year, in turn due to a 15 percent expansion in average assets.

Non-interest income also expanded by 11.5 percent year-on-year to P10 billion in the first semester, attributed to higher income from securities trading, fees and commissions and the insurance business.

Operating expenses, on the other hand, grew by 7.6 percent year-on-year. The bank spent 51.9 centavos to earn every peso in its book.

The bank’s total assets stood at P1.4 trillion at the end of the period, representing an increase of 9.7 percent increase year-on-year.

Deposits rose by 12 percent year-on-year to P1.2 trillion, a new record level for the bank. On the other hand, the bank grew its loan book by 9 percent year-on-year to P762.6 billion.

In terms of asset quality, gross 90-day non-performing loan (NPL) ratio stood at 1.77 percent, down from last year’s 1.85 percent. Loan loss cover was maintained at 108 percent.