BPI nets P22B

Ayala-led Bank of the Philippine Islands (BPI) grew net profit last year by 20.9 percent to reach P22.05 billion on higher interest income, fee-based earnings and trading gains.

Total revenues grew by 12.1 percent to P66.55 billion, the bank disclosed to the Philippine Stock Exchange on Thursday.

Net interest income increased by 9.7 percent to P42.38 billion while non-interest income rose by 16.7 percent to P24.17 billion on strong gains related to its securities portfolio, and higher fees from core transactional and bancassurance businesses.

“We took advantage of 2016’s market conditions to exploit unique opportunities, while gearing for growth in 2017 and beyond. We led some critical financing transactions for corporate clients, spurring our country’s development in energy and infrastructure. In retail, we have positioned our teams for both stronger volumes and more focused risk management,” BPI president and chief executive officer Cezar Consing said.

The bank spent 52.5 centavos to earn every peso in its book. This was more efficient than the previous year, when it spent 53.7 centavos to earn every peso.

Return on equity improved by 1.44 percentage points to 13.8 percent from the previous year.

Total loan book grew by 19.2 percent to P1.04 trillion, 79 percent of which was lent out to the corporate sector and the remaining 21 percent to retail clients.

On the funding side, total deposits expanded by 12.2 percent to P1.43 trillion, of which 73.5 percent consisted of low-cost deposits.