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Ayala-led Bank of the Philippine Islands (BPI) booked P11.68 billion in first semester net profit, down by 15 percent year-on-year as the bank set aside a much larger buffer for credit losses during this coronavirus (COVID-19) pandemic.
BPI forked out P15 billion in loan loss provisions during the semester, 4.3 times higher than the cushion put up in the same period last year, noting that the COVID-19 pandemic had ushered in a difficult period for consumers and businesses that could lead to a potential increase in bad loans.
For the second quarter alone – the period widely expected to reflect the worst impact of the lockdown protocols imposed by the government to curb the pandemic – BPI’s net profit fell by 24.6 percent year-on-year to P5.29 billion.
The bank’s core businesses remained robust for the first semester, with revenues rising by 14.8 percent year-on-year to P52.69 billion.
Net interest income derived from lending activities grew by 12.5 percent year-on-year, reaching P36.40 billion while non-interest income – which includes fee-based, securities trading and foreign exchange businesses – rose by 20.3 percent year-on-year to P16.29 billion.