By James A.Loyola
Bank of the Philippine Islands (BPI) reported a 29.5 percent hike in net income to P22.03 billion in the first nine months of 2019 from the P17.01 billion registered in the same period last year.
The bank said total revenues for the nine-month period increased by 24.8 percent to P71.00 billion, driven by a 19.8 percent year-on-year growth in net interest income which reached P48.66 billion.
Net interest margin widened by 26 basis points on higher asset yields which rose by 89 basis points, partially offset by higher cost of funds.
Total loans as of September 30, 2019 reached P1.37 trillion, registering a growth of 8.2 percent year-on-year, on the back of consumer and corporate loan growth of 12.5 percent and 7.4 percent, respectively.
Within the consumer segment, credit card loan growth continued its upward trajectory, climbing 24.6 percent year-on-year.
Total deposits reached P1.62 trillion, higher by 5.0 percent year-on-year. The Bank’s CASA Deposit Ratio stood at 69.1 percent while the Loan-to-Deposit Ratio was at 84.7 percent.
Non-interest income reached P22.34 billion in the nine-month period, a 37.5 percent increase year-on-year, driven by higher securities trading gains and fee-based income.
The Bank’s total securities position stood at P392.99 billion, up by 17.3 percent year-on-year. Fees, commissions, and other income increased by 19.1 percent, primarily from higher fee revenues from credit cards, transaction banking, electronic channels, deposit products, and insurance.
Provision for losses for the nine-month period, including specific reserves for Hanjin, was at P4.58 billion, bringing the Bank’s Loss Coverage Ratio to 102.7 percent. NPL Ratio was at 1.81percent, flat compared to the prior year.
Total assets stood at P2.12 trillion, higher by 8.4 percent year-on-year, with Return on Assets at 1.4 percent.
Total Equity reached P267.85 billion, providing a strong capital position to support future growth, with an indicative Common Equity Tier 1 Ratio of 15.87 percent and Capital Adequacy Ratio of 16.76 percent.