The Bank of the Philippine Islands, the banking arm of the Ayala Group, said Thursday it posted a record net income of P48 billion in the first nine months of 2024, a 24 percent increase in the year-earlier period. The earnings growth was driven by strong revenue performance and positive operating leverage.
BPI said return on equity stood at 15.9 percent while return on assets was 2.1 percent. Earnings per share rose 16.5 percent to P9.10, despite dilution from additional shares after the BPI and Robinsons Bank merger.
Total revenue increased 25 percent to P125.8 billion as net interest income rose 22 percent to P93.8 billion. Average loans expanded 18.9 percent, boosting the net interest margin by 22 basis points to 4.29 percent.
Non-interest income surged 32 percent to P31.9 billion, fueled by securities trading gains of P3 billion and a 28 percent rise in fee income to P26.4 billion due to higher service charges and credit card fees.
Operating expenses were up 22 percent to P59.4 billion due to higher manpower, transaction processing, and technology costs. This resulted in a cost-to-Income ratio of 47.2 percent.
BPI, the country’s 4th largest lender by assets, set provisions at P4.8 billion, a 60 percent rise from last year. Sequentially, the non-performing loan ratio increased 10 basis points to 2.30 percent, with a strong NPL coverage ratio of 111.17 percent.
In the third quarter, BPI achieved its highest quarterly income to date at P17.4 billion, a 29 percent year-on-year increase. Total revenues increased by 26 percent to P44.6 billion while gross loans rose 19 percent to P2.1 trillion on strong growth in personal loans, business banking, and microfinance.
Total deposits increased 15 percent at P2.5 trillion.
