BPI posts higher income in Q2
BANK of the Philippine Islands (BPI) saw its net income rise by 4.5% year on year in the second quarter amid an increase in revenues.
The lender’s second-quarter income stood at P13 billion, BPI said in a disclosure to the local bourse on Thursday.
The modest year-on-year increase came amid a one-time gain seen in the same quarter in 2022, it noted.
“Without the effect of the prior year gain from property sale, quarterly net income would be higher by 49.3% from the same quarter last year,” it said.
“Total revenues reached P33.9 billion for the quarter, up 4.9%, owing to the decline in non-interest income offsetting the increase in net interest income,” BPI added.
Its financial statement was not available as of press time.
The bank’s second-quarter performance brought its first-half net income to P25.1 billion, up by 23% year on year.
This translated to a return on equity of 15.5% and a return on assets of 1.92%.
“Total revenues for the first semester of the year ramped up 13.8% to P65.6 billion, on the back of the 27.4% increase in net interest income to P50.1 billion, attributable to average asset base expansion of 9.2% and net interest margin widening by 56 basis points to 4.03%,” BPI said.
“This was tempered by the 15.4% decline in non-interest income to P15.5 billion due to the property sale gain recognized in the prior year. Removing the impact of this one-off transaction, non-interest income would be higher by P2.2 billion or 16.3%, led by the increase in fees from credit cards, various service charges, and securities trading,” it added.
Meanwhile, the bank’s operating expenses rose by 21.4% to P31.4 billion in the first semester amid higher spending due to salary increases and investments in digitalization programs, among others.
As a result, its cost-to-income ratio stood at 47.9%.
BPI’s loans expanded by 10.5% to P1.7 trillion in the first half, driven by growth in its corporate (8%), credit card (42.7%) and auto (20.4%) portfolios.
Despite the rise in loans, BPI said asset quality “remained robust,” with its nonperforming loan (NPL) ratio at 1.88% at end-June.
Its NPL coverage ratio was at 167.44%. It set aside P2 billion in provisions in the period, down 60% from the P5 billion seen a year prior.
On the funding side, total deposits grew 7.6% year on year to P2.1 trillion.
BPI’s low-cost current and savings accounts (CASA) ratio stood at 70.2%.
The loan-to-deposit ratio stood at 80.2%.
The bank’s total equity was at P336.1 billion at end-June, with its common equity Tier 1 ratio at 15.5% and capital adequacy ratio at 16.4%, both above the regulatory minimum.
Its total assets grew by 8.9% year on year to P2.7 trillion as of June.
BPI’s shares rose by P1.10 or 0.97% to close at P114.50 apiece on Thursday.
