BPI’s 2019 net profit at P28.8B

BPI top brass at 2019 stockholders meeting

Ayala-led Bank of the Philippine Islands grew net profit last year by 24.8 percent to P28.8 billion on higher margins and lending activities as well as improved treasury gains.

Net income for the fourth quarter of 2019 was P6.77 billion, higher by 11.6 percent compared to the same period in 2018, the bank disclosed to the Philippine Stock Exchange on Wednesday.

Net interest margin increased by 24 basis points to 3.35 percent in 2019. At the same time, the bank grew its loan book by 8.9 percent to P1.48 trillion as of end-2019, driven by consumer loans which grew by 13.4 percent, while corporate and small and medium enterprise (SME) loans expanded by 7.9 percent and 5.8 percent, respectively.

Non-interest income amounted to P28.39 billion, an increase of 25.2 percent versus 2018, primarily from higher fee-based income and securities trading gains.

On the funding side, BPI’s total deposits rose by 6.9 percent to P1.7 trillion, 69.1 percent of which consisted of low-cost deposits. For every P1 of deposit generated, the bank turned 87 centavos into earning assets by lending out.

Total assets stood at P2.21 trillion at yearend, higher by 5.7 percent from the previous year. On asset quality, the ratio of bad loans to total loans declined to 1.66 percent from 1.85 percent in the previous year.

Total Equity amounted to P269.58 billion, with an indicative common equity tier 1 ratio of 15.17 percent and capital adequacy ratio of 16.07 percent, both well above regulatory requirements.

Operating expenses last year summed up to P50.08 billion, higher by 14.8 percent from the previous year. The bank spent 53.1 centavos to earn every peso in 2019, more efficient than the 55.5 centavos spent to earn every peso in the previous year.