INQUIRER file photo
Ayala-led Bank of the Philippine Islands (BPI) chalked up P6.25 billion in net income for the first quarter, flat versus the same period last year, on higher expenses from technology investments and rollout of microfinance branches.
For the first quarter, however, BPI’s net profit exceeded the P5.9-billion bottomline level both reported by industry rivals BDO Unibank and Metropolitan Bank & Trust Co.
Total revenues reached P18.45 billion, higher by 2.7 percent year-on-year. Bulk of these came from net interest income, which rose by 8.9 percent as the bank expanded its loan book, driven primarily by corporate loans. Revenues growth, however, was curbed by the decline in non-interest earnings.
Loan yields improved but interest expense tempered the growth in net interest income, partly due to higher documentary stamp tax (DST) rates on deposits which increased the cost of funds by 5 basis points. Net interest margin (NIM) nonetheless widened by 4 basis points year-on-year.
Total loans stood at P1.21 trillion, marking a growth rate of 17.2 percent year-on-year. On the funding side, total deposits reached P1.59 trillion, up by 10.4 percent, of which 71.6 percent consisted of low-cost deposits.
Non-interest income dropped by 8.1 percent to P5.94 billion due to lower income from trust and investment management fees, securities trading and asset sales. Meanwhile, credit card fees, bank commissions, stock brokerage fees, and foreign exchange trading were higher for the period.
Operating expenses totaled P9.75 billion, up by 11.7 percent, driven mainly by accelerated technology spending. Likewise, manpower costs and premises costs were higher by 9 percent due to increased headcount and the continued build up of microfinance branches.