Zobel family-led Bank of the Philippine Islands (BPI) booked record profits in the first half of the year, driven by higher revenues as consumer loans climbed.
BPI on Thursday said its bottom line in the January to June period expanded by 21.5 percent to P30.6 billion.
Meanwhile, revenues swelled by 23.8 percent to P81.2 billion, as the loan portfolio of the country’s fourth largest bank grew, BPI’s stock exchange filing showed.
READ: BPI taps COL Financial for funds distribution
Net interest income jumped by 22.2 percent to P61.3 billion, with average loans rising by 18.4 percent.
Noninterest income, meanwhile, surged by 28.7 percent to P19.9 billion due to an increase in fee income—such as service charges and credit card fees—and foreign exchange gains of P2.2 billion.
Return on equity was flat at 15.5 percent.
In the second quarter alone, BPI said earnings went up by 17.5 percent to P15.3 billion, while revenues grew by nearly a quarter to P41.7 billion.
Total loans stood at P2 trillion, an 18-percent growth as personal loans ballooned.
As of end-June, assets of the Ayala Group’s banking arm rose by 15.8 percent to P3.1 trillion.
READ: BPI Q1 revenues soar, income hits P15.3B
Earlier this month, BPI announced it would issue P5 billion worth of bonds to fund its sustainability-related projects.
The peso-denominated fixed-rate Asean Sustainable Bonds represent the third tranche of BPI’s P100-billion bond program approved in 2022.
The offer period will run from July 18 to Aug. 2, while listing on the Philippine Dealing and Exchange Corp. is expected on Aug. 9.
The bonds, which will mature in one and a half years, will be offered at a minimum amount of P500,000. Investors have the option to add investments in increments of P100,000.
The first tranche worth P20.3 billion was issued in January last year, proceeds of which will be used to provide financial assistance to micro, small and medium enterprises.
Meanwhile, funds raised from the P5-billion second tranche in October will be used for “general corporate purposes,” BPI said. —Meg J. Adonis