March 21, 2023

BPI posts record net income in 2022

BANK of the Philippine Islands (BPI) announced a full-year unaudited net income of P39.6 billion in 2022, increasing by 66 percent from the previous year.

In a press release on Friday, the bank said this was driven by strong loan growth, higher net interest margins, and lower loan loss provisions as well as a gain from a property sale in the second quarter.

BPI recorded a return on equity at 13.14 percent and return on assets at 1.59 percent for the year 2022.

The bank’s record revenue of P118.5 billion in 2022 is a 21.7 percent increase from 2021. This was driven by an increase in net interest income, seeing a 22.2-percent growth to P85.1 billion. This was in turn propelled by asset base expansion and improvement in the net interest margin by 28 basis points to 3.59 percent.

One-off gains on property sales, higher fees from the credit cards business and transaction banking services, as well as gains from foreign exchange transactions, saw the non-interest income grow by 20.3 percent to P33.5 billion.

The bank booked provisions of P9.2 billion, a 30.2% reduction from last year. Meanwhile, asset quality continued to improve with the NPL ratio declining to 1.76%, while the NPL coverage ratio rose to 180.1% as of the end of the year.

Total loans amounted to P1.7 trillion as of December 31, 2022, up 15.3 percent from the previous year, driven by 31.1 percent growth in credit card loans, 15.5 percent growth in loans for corporate/SMEs (small and medium enterprises), and 14.0 percent growth in vehicle loans.

Total deposits increased 7.2 percent year on year, amounting to P2.1 trillion in 2022, while current account savings accounts (CASA) increased 3.5 percent.

In addition, the CASA ratio stood at 74.4 percent and the loan-to-deposit ratio at 81.2 percent.