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May 27, 2024

Asset sale boosts BPI Q2 profit to a record P12.5B

Bank of the Philippine Islands (BPI) headed by bankero TG Limcaoco booked a 83 percent jump to its highest quarterly net income of P12.5 billion from April to June this year compared to P6.8 billion in the same quarter last year.

The revenues of the oldest bank in Southeast Asia and the Philippines recorded a 35.6 percent surge in total revenues to P57.6 billion in the second quarter of the year from a year-ago level of P48.1 billion on robust performances from net interest income and non-interest income.

Excluding the impact of the asset sale, BPI would still a record

revenue of P27.3 billion and record income of P8.7 billion for the second quarter of 2022.

The Ayala-led bank delivered strong first half results as its earnings surged 73 percent to P20.4 billion from P11.8 billion on higher revenues and lower provisions.

“This result is inclusive of a net gain on sale of property and tax adjustments due to the CREATE Law,” BPI said in a statement.

Excluding the impact of the asset sale and tax adjustments, net income still increased by 24 percent to P16.7 billion.

Total revenues for the first half of the year increased by 19.8 percent year-on-year to P57.6 billion driven by the growth in net interest income of 16.2 percent to P39.3 billion on the back of 14.4 percent loan growth and a 15-basis point expansion in net interest margin to 3.46 percent.

BPI’s total operating expenses for the first semester inched up by 7.3 percent to P25.8 billion from P24.1 billion, with investments in technology as the main accelerator.

According to BPI, provision for soured loans fell by 23.1 percent to P5 billion from January to June this year compared to P6.5 billion in the same period last year.

The bank’s non-performing loan (NPL) ratio further improved to 1.99 percent from 2.94 percent, while NPL coverage ratio stood at a comfortable 170.7 percent from 120.3 percent.

“The sustained strong metrics in asset quality resulted in a continued decline in credit cost, to 66 basis points, towards pre-pandemic levels,” BPI said.

Total loans as of end June was P1.6 trillion, a 14.4 percent growth year-on-year, due to higher loan volumes across the board, led by growth in the corporate and SME, credit card, and auto portfolios of 16.3 percent, 16.5 percent, and 5.9 percent, respectively.

Total deposits grew 18.3 percent to P2 trillion, as current account and savings account (CASA) increased by 12.6 percent

Total assets reached P2.5 trillion, up 13.1 percent versus the same period last year. Total equity stood at P304.1 billion, with an indicative Common Equity Tier 1 Ratio of 16 percent and a Capital Adequacy Ratio of 16.9 percent, both above regulatory requirements.