The Zobel family’s Bank of the Philippine Islands (BPI) reported a 21.5 percent growth in net income to a record P30.6 billion in the first semester of 2024, driven by robust revenues and sustained positive operating leverage. 

In a disclosure to the Philippine Stock Exchange (PSE), the bank said its return on equity was 15.5 percent and return on assets was two percent. 

Earnings per share for the first semester stood at P5.80, up 14 percent from last year’s P5.09, notwithstanding the additional shares issued for the BPI and Robinsons Bank Corporation merger.

Total revenues accelerated 23.8 percent to P81.2 billion year-on-year, boosted by the 22.2 percent increase in net interest income to P61.3 billion. Average loans expanded 18.4 percent, and net interest margin widened 23 basis points to 4.26 percent. 

Non-interest income was up 28.7 percent to P19.9 billion, driven by the 28.8 percent increase in fee income to P17.0 billion and foreign exchange gains of P2.2 billion, up 58.6 percent year-on-year. Higher service charges, bancassurance income, and credit card fees led to strong fee income performance.

Operating expenses reached P38.3 billion, up 21.9 percent, due to increased spending on manpower, transaction processing costs, and technology, resulting in a cost-to-income ratio of 47.1 percent.

Provisions booked were P3.0 billion, a 50.0 percent jump from last year. Despite the uptick in the non-performing loan (NPL) ratio to 2.20 percent, asset quality remained strong, with sufficient NPL coverage at 127.6 percent.

For the second quarter of the year, the Bank booked net income of P15.3 billion, up 17.5 percent year-on-year, on the back of higher revenue growth of 23.0 percent to P41.7 billion.

Total loans stood at P2 trillion, an 18 percent increase over the previous year, driven by sustained growth across all portfolios led by personal loans, up 128.7 percent; business banking, up 87.9 percent; and microfinance, up 67.2 percent. 

Total deposits stood at P2.5 trillion, up 14.4 percent year-on-year, with CASA (current and savings accounts) ratio at 64.7 percent and the loan-to-deposit ratio at 82.8 percent.

Total assets grew to P3.1 trillion, up 15.8 percent year-on-year. Total equity stood at P406.5 billion, with an indicative common equity tier 1 ratio of 14.2 percent and a capital adequacy ratio of 15 percent, both above regulatory requirements. 

Last month, the bank distributed cash dividends of P1.98 per share, up 17.9 percent from last year, supported by its strong financial performance.

As part of its P100 billion Bond Programme, BPI announced the issuance of 1.5-year P5 Billion fixed-rate ASEAN Sustainable Bonds1, with an option to upsize. 

The offer period will start on July 18, 2024, and end on Aug. 2, 2024. The Sustainable Bonds will be listed with the Philippine Dealing and Exchange Corporation.