Bank of Commerce (BankCom), the banking arm of the San Miguel Group, posted a higher January to June net profits of P886.91 billion, up by 191 percent from P304.37 million same period last year.
BankCom disclosed to the Philippine Stock Exchange (PSE) that earnings increased due to strong second quarter core business performance.
The bank’s gross income as of end-June rose by 22.95 percent year-on-year to P3.67 billion from P2.98 billion.
Net interest income of P3.08 billion was 18.21 percent higher year-on-year after a 35.59 percent increase in its loan portfolio. Interest expense rose by 8.97 percent despite higher interest rates, said the bank.
Meantime, other income went up by 55.95 percent year-on-year to P583.57 million, driven by higher service charges, fees and commissions, and foreign exchange gains.
As of end-June, with more corporate borrowers, BankCom’s total assets amounted to P207.25 billion, up by 3.78 percent. Corporate loans also increased by P26.47 billion to P100.85 billion.
The bank said its bad loans continue to be manageable. Its latest non-performing loans ratio improved to 2.63 percent compared to 3.09 percent in December last tear.
BankCom’s capital funds stood at P26.98 billion in the first half while its capital adequacy ratio was at 17.85 percent. The CET1 ratio, meantime, was at 13.38 percent.