BankCom’s 2021 profit at 7-year high

MARKET DEBUT BankCom became a public company on March 31 —Photo courtesy of PSE

San Miguel Corp.’s newly listed banking arm, Bank of Commerce (BankCom), said earnings hit a seven-year high in 2021 as it expanded its business while keeping costs in check.

In a statement, BankCom said net income last year had jumped 53 percent to P1.2 billion, reflecting the lender’s “resiliency amidst the continuing challenges of the COVID-19 pandemic.”

BankCom, which raised P3.36 billion via an initial public offering (IPO) last month, registered growth as net interest income rose 6 percent in 2021.

Non-interest income hit P826 million, which was propped up by a 19-percent growth in service charges and fees and commissions and gains on sale of acquired assets.

Meanwhile, operating expenses were up 3 percent despite added spending on its modernization while interest expenses dropped 41 percent to P697 million, the statement showed.

BankCom—which traces its origins to the Overseas Bank of Manila, established in Binondo, Manila, in 1963—has a nationwide network of 140 branches and 261 automated teller machines (ATM).

Growing balance sheet

The bank ended 2021 with P199.7 billion in assets, up 17 percent, as it ramped up the purchase of investment securities and grew its loan portfolio. The asset growth was supported by a 15-percent increase in deposits to P172 billion, the lender added.

It closed the year with a total capital of P23 billion, up 39 percent. This was boosted by the P5.5-billion infusion made by another San Miguel subsidiary, SMC Equivest Corp.

The figures provided a snapshot of the company’s recent growth trend. Following its public listing, the lender expects to further expand, having met a key requirement to upgrade its license from a regular commercial bank to a universal bank.

IPO proceeds will be used to fund its lending activities and capital expenditure requirements in connection with the upgrading of its ATM fleet and its core banking system.

BankCom shares shed 0.16 percent to P12.20 per share on Tuesday. INQ