BPI profit improves on lower provisions
The Bank of the Philippine Islands posted an 11.5 percent growth in net income to P23.88 billion last year, driven by lower provisions and record-high fee income.
In a disclosure to the Philippine Stock Exchange, the bank said profits jumped to P6.4 billion in the fourth quarter of 2021, 51.2 percent higher than the same period of 2020, and 13.2 percent higher quarter-on-quarter.
“Improving mobility conditions led to higher transaction volumes which fueled the sequential growth in revenues by 9.7 percent quarter-on-quarter,” BPI said.
Total revenues declined by 4.2 percent to P97.40 billion in 2021 as net interest income stood at P69.58 billion, lower by 3.7 percent compared to the previous year because net income margin contracted from 3.49 percent to 3.30 percent driven by lower yields across most loan portfolios and treasury assets.
Non-interest income declined by 5.5 percent to P27.82 billion due to lower trading income but this was tempered by a 23.2 percent boost in fee income, with the performance rebound in most business lines surpassing 2019 levels.
Total operating expenses for the year reached P50.73 billion, up 5.4 percent on the back of higher technology cost. Cost-to-Income ratio stood at 52.1 percent.
The bank booked provisions of P13.13 billion, 53.1 percent lower compared to the P28.00 billion recorded last year. NPL ratio was at 2.49 percent, with NPL coverage ratio at 136.1 percent.
Total loans ended at P1.48 trillion, a 4.9 percent increase year-on-year, due to higher mortgage, credit card, and microfinance loans.
Total deposits increased by 13.9 percent to P1.96 trillion, coming from CASA and time deposit growth of 10.3 percent and 28.2 percent, respectively. The bank’s CASA Ratio was 77.0 percent, while the Loan-to-Deposit Ratio was 75.5 percent.
Total assets stood at P2.42 trillion, up 8.4 percent year-on-year. Total equity increased to P293.06 billion, with an indicative Common Equity Tier 1 Ratio of 15.8 percent and a Capital Adequacy Ratio of 16.7 percent, both comfortably above regulatory requirements. Return on Equity was 8.4 percent, while Return on Assets was 1.1 percent.