Bank of Commerce posts record income
MANILA -Bank of Commerce (BankCom), the universal banking arm of conglomerate San Miguel Corp., posted record profits in 2022 after net income jumped 49 percent to P1.8 billion.
This was the lender’s largest profit since it was acquired by the food, drinks, energy and infrastructure giant in 2009.
BankCom’s earnings were driven by higher interest income, service charges, fees, and commissions, foreign exchange and gains from the sale of foreclosed assets.
Total revenue during the period reached P8.12 billion, up 30 percent, while net interest income expanded by 24 percent to P6.68 billion. Fee-based income also rose 74 percent to P1.43 billion.
“This was mainly boosted by the increase in interest on loans and receivables and investment securities,” BankCom said.
Total loans and receivables rose 41 percent to P105.1 billion, mainly from the growth of corporate loans.
Investment securities were also up 19 percent to P58.39 billion.
BankCom’s other income sources contributed P1.43 billion, an increase of 74 percent. This was driven by a newly established investment banking business, foreign exchange gains and income from the sale of foreclosed assets amounting to P340.45 million.
The lender ended 2022 with total assets of P217.52 billion, up 9 percent.
Its capital base stood at P28.03 billion, an increase of 20 percent.
BankCom also ended the year with a tier 1 and capital adequacy ratio that was above regulatory requirements at 17.22 percent and 17.97 percent, respectively.
Last November, BankCom received its universal banking license, allowing it to offer more financial services to with the country’s top lenders.
In 2022, BankCom raised P3.37 billion from its public listing at the Philippine Stock Exchange. It also raised P7.75 billion from a maiden bond sale.
It traces its origins to the Overseas Bank of Manila, established in Binondo, Manila in 1963. Today, it has over 140 branches and 259 automated teller machines.
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