By James A. Loyola
Bank of the Philippine Islands (BPI) registered a 24.6 percent hike in net income to P13.75 billion in the first half of 2019 from P11.03 billion in the same period last year due to strong gains in the second quarter.
In a disclosure to the Philippine Stock Exchange, the bank said it posted P7.01 billion in net income in the second quarter of 2019, higher by 46.8 percent compared to the same period last year.
Total Revenues for the first half increased by 23.3 percent to P45.90 billion, driven by a 24.1 percent year-on-year growth in Net Interest Income which reached P32.36 billion.
Net Interest Margin widened by 38 basis points on higher asset yields which rose by 103 basis points, partially offset by higher cost of funds.
Total Loans as of June 30, 2019 reached P1.35 trillion, registering a growth of 10.8 percent year-on-year, boosted by corporate loans which increased by 11.6 percent and consumer loans which grew by 10.3 percent.
Within the consumer segment, credit card loans continued to accelerate, rising by 25.8 percent in the first half.
Total Deposits reached P1.66 trillion, higher by 8.0 percent year-on-year. The Bank’s CASA Deposit Ratio stood at 68.3 percent while the Loan-to-Deposit Ratio was at 81.7 percent.
Non-interest Income reached P13.54 billion in the first half, a 21.5 percent increase year-on-year, driven by increases in securities trading gains and fee-based income. The bank’s securities position stood at P404.22 billion, up by 33.4 percent year-on-year.
Fees, Commissions and Other Income increased by 16.1percent across a broad range of businesses including credit cards, deposit products, insurance, transaction banking, leasing, retail loans and electronic channels.
Provision for Loan Losses for the first semester, which included specific reserves for Hanjin, was at P3.48 billion, bringing the Bank’s Loss Coverage Ratio to 100.7 percent. NPL Ratio was at 1.86 percent, flat versus year-end 2018.