Ayala-led Bank of the Philippine Islands (BPI) grew its second quarter net profit by 46.8 percent year-on-year to P7.01 billion, as higher trading gains and fee-based income complemented the double-digit expansion in net interest earnings.
This brought six-month net profit to P13.74 billion, up 24.6 percent from year-ago level, BPI told the Philippine Stock Exchange.
Comprehensive income in the first half went up by 62.8 percent year-on-year to P15.25 billion.
Total revenue in the first half rose by 23.3 percent to P45.9 billion, driven by a 24.1-percent year-on-year growth in net interest income, which reached P32.36 billion.
Net interest margin widened by 38 basis points on higher asset yields, which rose by 103 basis points, partially offset by higher cost of funds.
BPI grew its loan book in the six-month period by 10.8 percent year-on-year to P1.35 trillion, boosted by corporate and consumer loans, which increased by 11.6 percent and 10.3 percent, respectively. Within the consumer segment, credit card loans rose by 25.8 percent year-on-year in the first half.
Noninterest income hit P13.54 billion, up by 21.5 percent year-on-year, driven by increases in securities trading gains and fee-based income.
On its treasury book, BPI has P404.22 billion worth of securities position, up by 33.4 percent from the previous year.
Fees, commissions and other income rose by 16.1 percent year-on-year across businesses that include credit cards, deposit products, insurance, transaction banking, leasing, retail loans and electronic channels.
On the funding side, total deposits rose by 8 percent year-on-year to P1.66 trillion. Of these, 68.3 percent represented low-cost deposits.
For every P1 accepted by the bank as deposit, it turned 81.7 centavos into earning assets by lending them out.
Operating expenses rose by P24.28 billion in the first half, up 14.4 percent year-on-year.
The bank spent 52.9 centavos to earn every peso in the first semester, improving from 57 centavos in the same period last year.
BPI set aside P3.48 billion as loss buffer for the semester, including reserves for Korean shipbuilder Hanjin. Loss coverage ratio stood at 100.7 percent.
Bad loans accounted for 1.86 percent of total loans, flat from the end-2018 level.
Total assets stood at P2.13 trillion, up 12.3 percent year-on-year.
Total equity was P259.88 billion, with an indicative core capital or tier 1 capital adequacy ratio at 15.55 percent and total capital adequacy ratio at 16.44 percent of total risk assets.