The Bank of the Philippine Islands (BPI) reported a net income of ₱16.6 billion for the first quarter as strong revenue growth offset increased operating expenses and provisions for credit losses.
BPI said net income in the January-March quarter was up 9 percent from the year-earlier period and 18 percent higher than that posted in the fourth quarter.
Total revenue reached ₱44.7 billion, up 13 percent from a year ago, underpinned by a 15 percent growth in net interest income. This was driven by an 8.6 percent expansion in the average earning asset base and a 30-basis-point improvement in net interest margin to 4.5 percent. Non-interest income rose 6.3 percent to ₱10.3 billion, supported by stronger credit card fees and service charges, despite weaker forex and trading income.
Operating expenses grew 13 percent to ₱20.3 billion, mainly due to higher investments in manpower, technology, and volume-related costs. The lender’s cost-to-income ratio improved slightly by 16 basis points to 45 percent.
Provisions for loan losses stood at ₱3.0 billion. Asset quality remained stable, with a non-performing loan (NPL) ratio of 2.3 percent while non-performing loans were fully covered.
BPI’s total assets grew 6.9 percent to ₱3.3 trillion, while gross loans increased 13 percent to ₱2.3 trillion. Deposits rose 6.3 percent to ₱2.6 trillion, bringing the loan-to-deposit ratio to 89.4 percent.
In March, BPI raised USD800 million from its largest-ever international bond issuance and maintained its “BBB-” rating from Fitch with a stable outlook. Capital ratios remained comfortably above regulatory thresholds.
