Bank of Commerce, the banking affiliate of San Miguel Corp., saw net income in the first half decline by 11 percent to P1.42 billion, weighed down by the cost of continued investment in people and technology.
The lender said net interest income increased 15 percent to P4.53 billion, driven by the expansion across all lending segments, supported by a higher loan and securities portfolio. Corporate loans saw growth due to program lending and loans extended to the San Miguel Group.
Non-interest income, meanwhile, dropped 23 percent to P698.4 million due mainly to the timing of investment banking and acquired assets sales.
Return-on-equity stood at 9.12 percent.
BankCom has continued to focus on growth through strategic investments in both its workforce and technology.
The bank implemented strategic hirings and enhanced its employee retention program, which led to increased compensation costs. It has also prioritized investments in technology, with upgrades in core banking system in partnership with Infosys; enhancement of the cash management system; and implementation of a new system to bolster security against fraud.
The bank expects the technological advancements to drive long-term profit growth and support the bank’s sustained growth momentum.
Meantime, BankCom declared its first dividends in over 20 years, fulfilling a commitment made during the bank’s initial public offering. The bank set aside P0.726 per preferred share and P0.2512 per common share, amounting to 23 percent of its previous year’s profits.
