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 the back of a double-digit rise in both interest income and non-interest earnings.
In a statement issued on Tuesday, Southeast Asia’s oldest bank said the six-month performance translated to an annualized return on equity of 13 percent and a return on assets of 1.4 percent.
For the second quarter alone, net profit was flat at P4.43 billion compared to the same period last year.
Comprehensive income for the same period, which included mark-to-market adjustments on available-for-sale securities, amounted to P9.1 billion, a 34 percent increase year-on-year.
“We remain focused on providing our shareholders with superior risk-adjusted returns through the cycle,” said BPI president and chief executive Cezar Consing.
BPI’s total revenues for the first semester reached P29 billion as against P25.97 billion in the previous year as both net interest income and non-interest income increased.
Net interest income ended the semester at P19 billion, 12-percent higher year-on-year, due to a 15-percent expansion in average assets. Non-interest income also grew by 11.5 percent year-on-year to P10 billion due to higher income from securities trading, fees and commissions and the insurance business.
There was a decline in foreign exchange trading gains but this was offset by the growth in fees and commissions, securities trading gains and insurance operations.
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.
Deposits rose 12 percent to P1.2 trillion, a new record level for the bank. The bank grew its loan book by 9 percent to P762.6 billion .
In terms of asset quality, gross 90-day nonperforming loan (NPL) ratio stood at 1.77 percent, down from last year’s 1.85 percent. Loan-loss cover was maintained at 108 percent.
BPI ended the period with capital of P149.7 billion. Consolidated core equity tier 1 capital adequacy ratio (CAR) was at 14.3 percent while total CAR stood at 15.2 percent.
BPI said its first semester cash dividend of P0.90 a share was recently approved by the Bangko Sentral ng Pilipinas. This will be payable to shareholders on Sept. 2, 2015.