Lending boosts BankCom bottom line by 56%
Core lending lifted the net income of Bank of Commerce (BankCom), the banking arm of conglomerate San Miguel Corp. (SMC), by 56 percent to a record high of P2.8 billion last year.
In a disclosure on Tuesday, the listed bank reported that its net interest income climbed 24 percent to P8.3 billion last year.
This propelled gross revenues by 23 percent to P9.98 billion for the period.
READ: Bank of Commerce posts 34% growth in nine-month earnings
Other income rose by 17 percent to P1.68 billion last year. This includes service charges, fees and commissions from investment banking, credit card and trust businesses.
Net non-performing loans (NPL) ratio dropped to 0.44 percent last year from 0.6 percent in 2022 as its asset quality improved. The NPL ratio is a measure of a bank’s credit risk and a lower figure means less financial risk for the financial institution.
Total loans and receivables increased by 4 percent to P109.57 billion last year, driven mostly by corporate clients.
Meanwhile, deposits grew by 5 percent to P185.91 billion for the period as current and savings accounts rose by 7 percent to P164.24 billion.
The bank’s tier 1 and capital adequacy ratio stood at 19.09 percent and 19.88 percent, respectively, which are both beyond the regulatory requirements.
Total assets were up 7 percent to P231.67 billion as of end-December 2023.
