BPI income up slightly in Q1
Ayala-led Bank of the Philippine Islands (BPI) chalked up P6.25 billion in net income in the first quarter, up by just 2.7 percent year-on-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 bottom line reported by rivals BDO Unibank and Metropolitan Bank & Trust Co.
BPI’s total revenues reached P18.45 billion.
The 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.
Total revenues, however, were tempered by the decline in nontrading income.
Loan yields improved but interest expense tempered the growth in net interest income, partly due to higher documentary stamp tax rates on deposits, which increased the cost of funds by 5 basis points.
Net interest margin nonetheless widened by 4 basis points year-on-year.
Total loans stood at P1.21 trillion, up 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.
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 buildup of microfinance branches. —DORIS DUMLAO-ABADILLA
