Interest income boosts BPI bottomline

Ayala-led Bank of the Philippine Islands reported a 1.1-percent increase in net profit to P18.23 billion last year from the level in the previous year, as higher interest income compensated for the slump in treasury gains.

In a statement on Friday, BPI said its total revenue had risen by 6.4 percent to P59.36 billion, driven by the 11-percent growth in its interest income to P38.64 billion.

The bank’s foreign and securities trading marking gains hit P2.86 billion, easing from P3.1 billion in the previous year. Non-interest income amounted to P20.72 billion, down by 1.2 percent.

Comprehensive income was P16.69 billion, down 7.1 percent.

“Last year, we worked to strike a balance between growth and profitability. Amidst volatile markets, we focused on margins and fees. We organized the bank around clients, recognizing that they are key to our success,” BPI president Cezar Consing said.

Return on equity last year stood at 12.3 percent, slipping by 1.4 percent.

BPI grew its loan book by 9.1 percent to P872.86 billion.  About 78 percent of loans went to corporate accounts while retail accounts accounted for 22 percent.

On the funding side, deposits expanded by 8.5 percent to P1.28 trillion.  Low-cost deposits accounted for 72.3 percent of total.

On asset quality, gross 90-day nonperforming loans stood at 1.6 percent of total loans, up slightly from 1.5 percent a year ago.  Loan loss cover was 110.2 percent, not counting the value of collateral.

The bank spent 53.7 centavos for every P1 earned, marking a stable cost-to-income ratio.

Capital, net of all cash dividends declared at yearend, stood at P150.28 billion, up by 4.3 percent. Doris Dumlao-Abadilla