BPI profit grows 38.6%

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    Bank of the Philippine Islands said profit for the third quarter of the year reached P8.29 billion, up 38.6 percent from the prior year.

    This brings the lender’s nine-month bottomline to P22.03 billion, up 29.5 percent from last year’s P17.01 billion.

    Revenues reached P71 billion, up 24.8 percent, driven by a 19.8 percent hike in net interest income, at 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,” BPI said.

    BPI said it closed the period with total loans of P1.37 trillion, up 8.2 percent, 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 percent. The Bank’s CASA deposit ratio stood at 69.1 percent while the loan-to-deposit ratio was at 84.7 percent,” BPI said.

    Non-interest income meanwhile hit P22.34 billion, up 37.5 percent, driven by higher securities trading gains and fee-based income. BPI’s securities position stood at P392.99 billion, up 17.3 percent. Fees, commissions, and other income grew 19.1 percent, primarily from higher fee revenues from credit cards, transaction banking, electronic channels, deposit products, and insurance.

    Operating expenses stood at P37.09 billion, up 15.6 percent. Cost- to-income ratio was at 52.2 percent, lower than the 56.4 percent recorded last year.

    “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 (non performing loan) ratio was at 1.81 percent, flat compared to the prior year,” BPI said.

    The bank closed the period with a total assets of P2.12 trillion, up 8.4 percent from end-2018.

    Return on assets stood at 1.4 percent. Shareholders’ equity stood at P267.85 billion, with an indicative common equity tier 1 Ratio of 15.87 percent and capital adequacy ratio of 16.76 percent.