Bank of the Philippine Islands delivered its highest full year net income of P51.7 billion, up 30.5 percent from the previous year’s P39.6 billion, driven by record revenues and lower provisions which offset the increase in operating expenses.
Excluding the impact of the one-off gain from the 2022 property sale, net income would be up 44.1 percent.
Fourth quarter net income was P13.1 billion, up 44.3 percent year-on-year, also on higher revenue growth and lower provisions recognized.
“The bank’s solid financial performance is a reflection of its strengthened customer franchise and deeper customer engagement which led to record volumes and market share gains in several businesses,” BPI said in a statement.
For full year 2023, Return on Equity was 15.35 percent and Return on Assets was 1.93 percent.
Total revenues soared 16.7 percent to P138.3 billion year-on-year, attributable to the 22.7 percent increase in net interest income to P104.4 billion, as average asset base expanded 7.7 percent and net interest margin widened 50 basis points to 4.09 percent.
Non-interest income grew 1.5 percent to P34.0 billion, on the back of record trading income gains of P5.2 billion, up 37.0 percent year-on-year, tempered by the 3.0 percent decline in fee income to P28.8 billion.
Removing the impact of the 2022 one-off transaction, fee income would be higher by P4.1 billion or 16.6 percent, on higher fees from credit cards, various service charges, and bancassurance.
Operating expenses increased 19.2 percent to P69.1 billion, led by higher manpower, technology and marketing costs, resulting in a Cost-to-Income ratio of 50.0 percent.
The bank booked provisions of P4.0 billion, a 56.4 percent reduction from last year.
Asset quality remains strong with NPL ratio at 1.84 percent, with sufficient NPL coverage at 156.1 percent as of the end of the year.
Total loans stood at P1.9 trillion, a 10.5 percent increase over the previous year, due to the strong growth across all portfolios.
Total deposits stood at P2.3 trillion, up 9.5 percent year-on-year, mainly from the growth in time deposits which tempered the decline in CASA. The CASA Ratio stood at 67.0 percent and the Loan-to-Deposit Ratio at 82.0 percent.
Total assets reached P2.9 trillion, reflecting a 10.9 percent growth year-on-year. Total equity stood at P357.2 billion, with an indicative Common Equity Tier 1 Ratio of 15.3 percent and a Capital Adequacy Ratio of 16.2 percent, both well above regulatory requirements.
On January 1, 2024, the merger of BPI and Robinsons Bank Corporation, officially took effect, with BPI as the surviving entity. This merger will expand reach and enrich the overall banking experience of its customers by unlocking synergies within the BPI Group and Gokongwei ecosystems.
