Ayala-led Bank of the Philippine Islands (BPI) grew its net profit last year by 20.9 percent to reach P22.05 billion on higher interest income, fee-based earnings and trading gains.
This translated to a return on equity of 13.8 percent, improving by 1.44 percentage points from the previous year.
Total revenue grew by 12.1 percent to P66.55 billion, the bank disclosed to the Philippine Stock Exchange Thursday.
Net interest income rose by 9.7 percent to P42.38 billion while non-interest income was up by 16.7 percent to P24.17 billion on strong gains related to its securities portfolio as well as higher fees from core transactional and “bancassurance” or cross-selling of life insurance products in its branches.
“We took advantage of the market conditions in 2016 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.
Total loan book grew by 19.2 percent to P1.04 trillion, 79 percent of which was lent out to the corporate sector and 21 percent to retail clients.
“Growth in BPI’s business was buoyed by the bank’s strong relationships with corporate clients who drove loan growth across a variety of landmark transactions,” the bank reported. In the energy sector, BPI arranged a P12.5-billion Climate Bond for AboitizPower’s Tiwi-Makban geothermal plant. BPI also arranged a P15-billion retail bond issuance for Ayala Land and a P19.2-billion initial public offering of Pilipinas Shell.
In retail, BPI said it had enhanced customer focus by improving access and relationship management tools. In 2016, the Bangko Sentral ng Pilipinas (BSP) approved licenses to open a total of 44 new branches for both BPI and BPI Family Savings Bank.
“BPI personnel have been trained and equipped with new state-of-the-art tools to aid clients in making their most important financial decisions. Also, BPI consolidated its ownership in BanKO to enhance its focus on micro-entrepreneurs and promote inclusive growth,” the disclosure said.