Bank of the Philippine Islands booked P21.06 billion in provisions for loan losses in the first nine months of 2020 in anticipation of an increase in NPL levels in light of the continued weakness in the economic landscape.
This resulted in a net income of P17.17 billion for the first nine months of the year, a 22.1 percent drop from the P22.03 billion registered in the same period last year.
The third quarter net income was P5.50 billion, a 33.7 percent decrease from last year’s P8.29 billion.
Total revenuesfor the nine-month period increased by 9.7 percent to P77.88 billion. Net interest income grew by 11.8 percent to P54.40 billion, on the back of a 5.7 percent expansion in average asset base supported by an 18-basis point widening in net interest margin to 3.51 percent.
Non-interest income reached P23.48 billion, higher by 5.1 percent versus 2019 levels, primarily fromrobust securities trading gains.
Total operating expenses as of September30, 2020 amounted toP36.48 billion, down by 1.6 percent from the previous year due to lower premises, technology, and various discretionary costs such as marketing,advertising, and management and professional fees.
Cost-to-Income ratio stood at 46.8 percent, lower than the 52.2 percent recorded in the prior year.
Total Loans as of September 30, 2020 reached P1.38 trillion, increasing by0.9 percent year-on-year, with growth led by the mortgage and corporate loan segments at 8.7 percent and 2.6 percent, respectively.
Total deposits increased to P1.68 trillion, up 4.0 percent year-on-year, boosted by CASA deposits which grew by 14.7 percent.
Total assets stood at P2.20 trillion as of September 30, 2020, 3.6 percent higher year-on-year. Total equity amounted to P283.44 billion, with an indicative Common Equity Tier 1 Ratio of 15.46 percent and a Capital Adequacy Ratio of 16.35 percent, both well above regulatory requirements.