BPI Starts the Year with 43% Increase in Net Income

Makati—(PHStocks)—Bank of the Philippine Islands continued to deliver sustainable growth as it reported a net income of Php8.4 billion for the first quarter of 2013. This was 43% higher than last year’s Php5.8 billion.

At the end of first quarter, BPI’s total resources were P940 billion, 16% higher year-on-year as deposits grew by the same rate to P748 billion. In addition, the Bank was able to increase its assets under management to Php758 billion or 6% more than same period last year.

Net loans hit P514 billion, 19% better year-on-year. Lending to top corporates was up by 25%, while the middle market and SME segments went up by 17% and 14% respectively. Consumer loans also grew by 15%.

Gross 30 days NPL ratio was down to 2.1% from last year’s 2.5%. Reserve cover was 129%.

The improvement in net income for the period was driven by the 21% growth in total revenues as the Bank took advantage of the favorable market condition to register securities trading gains. Net interest income was slightly up, as average asset base expanded by 15%. Net yields though, contracted as interest rates continued to decline.

Other non-interest income lines likewise improved, particularly service charges and commissions, trust fees, and corporate finance fees. Operating costs reached P6.6 billion or 7% more year-on-year due to higher regulatory, technology, manpower, and variable costs. Impairment losses, however was down from last year.

BPI’s market capitalization as of end of March 2013 stood at P391 billion. Its Basel 2 Capital Adequacy Ratio (CAR) was 15.1%. In its recently held Stockholders’ Meeting, leadership of BPI was turned over to its new President and CEO Mr. Cezar Consing. Outgoing President and CEO Mr. Aurelio R. Montinola III commented, “With a strong Team BPI, we are confident that BPI will continue to move forward with quality sustainable growth. I firmly believe that my successor, a competent and experienced professional with many years in the international banking arena, will further take the Bank to a new level and position BPI as one of the best Asean banks in the near future.”

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