The Bank of the Philippine Islands, the country’s fourth largest lender by assets, said Thursday it posted record net income of P30.6 billion in the first half of the year, a 22 percent increase driven by robust revenues and sustained positive operating leverage.
Earnings per share for the first semester rose to P5.80, up by 14 percent from the previous year despite additional shares issued for the merger between BPI and Robinsons Bank.
Total revenues surged by 24 percent year-on-year to P81.2 billion, bolstered by a 22 percent rise in net interest income to P61.3 billion. The bank’s average loans expanded by 18 percent because of higher net interest margin of 4.26 percent. Non-interest income increased 29 percent to P19.9 billion on account of a 29 percent growth in fee income to P17.0 billion and foreign exchange gains amounting to P2.2 billion, up by 59 percent.
In the second quarter alone, BPI recorded a net income of P15.3 billion, up by 18 percent year-on-year, supported by a 23 percent increase in revenues to P41.7 billion.
Operating expenses in the first half increased by 22 percent to P38.3 billion, attributed to higher spending on manpower, transaction processing costs, and technology.
Provisions amounted to P3.0 billion, up 50 percent. Asset quality remained strong, with an non-performing loan ratio of 2.2 percent and an NPL coverage of 128 percent.
Total loans reached P2.0 trillion, higher by 18 percent on notable expansions in personal loans, business banking, and microfinance portfolios. Total deposits was up 14 percent to P2.5 trillion with a CASA ratio of 64.7 percent and a loan-to-deposit ratio of 82.8 percent. Total assets grew to P3.1 trillion, reflecting a 15.8 percent increase year-on-year, while total equity amounted to P406.5 billion.
On Thursday, BPI started the public offer of 1.5-year, P5 billion fixed-rate ASEAN Sustainable Bonds, with an option to upsize, as part of its P100 billion bond program. The offer period concludes on August 2, 2024. The Sustainable Bonds will be listed with the Philippine Dealing and Exchange Corp.
