By James A. Loyola Bank of the Philippine Islands reported a 5 percent dip in net income for the first quarter of 2020 to ₱6.39 billion from ₱6.72 billion in the same period last year as the COVID-19 pandemic forced it to make provisions for loan losses. In a disclosure to the Philippine Stock Exchange, the bank said it booked ₱4.23 billion in provisions for loan losses “as the COVID-19 pandemic ushers in a difficult period for consumers and businesses that could lead to potentially higher NPLs (non-performing loans.” It noted that, “This provision is 2.4 times more than the ₱1.80 billion set aside during the same period in 2019.” For the first quarter 2020, total revenues increased by 10.9 percent to ₱25.26 billion. Net Interest In-come grew by 13.0 percent, reaching P18.14 billion. Net interest margin was 3.63 percent, up by 24 basis points from 3.39 percent in the first quarter of 2019 as lower asset yields were offset by lower cost of funds. Non-interest income was ₱7.12 billion, an increase of 5.8 percent versus 2019, primarily from higher securities trading gains. Total loans as of March 31, 2020 reached at ₱1.45 trillion, up 7.3 percent year-on-year, with growth recorded in microfinance, SME, consumer, and corporate loan segments at 66.6 percent, 14.2 percent, 9.5 percent, and 6.7 percent, respectively. Total Deposits increased to P1.68 trillion, up 4.3 percent year-on-year. The Bank’s CASA Ratio was 73.5 percent, while the Loan-to-Deposit Ratio was 86.3 percent. The Bank’s indicative NPL Coverage Ratio increased to 109.02 percent in March 2020 compared to 92.55 percent as of March 2019. NPL Ratio stood at 1.82 percent as of the end of the first quarter 2020.