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June 19, 2024

Q1 profit of Philippine banks jumps 26% to P66B

Philippine banks continued to boost their bottom line growing the industry’s net income by 26.3 percent in the first quarter of the year amid the sustained economic rebound, according to the Bangko Sentral ng Pilipinas (BSP).

Preliminary data from the central bank showed the profit of the banking sector reached P66.34 billion from January to March this year or P13.82 billion higher than the P52.52 billion booked in the same period last year.

The sector net interest income went up by 6.1 percent to P171.22 billion from P161.39 billion as interest earnings of the sector inched up by 3.4 percent, while interest expenses declined by 10.6 percent.

Philippine banks also recorded an 8.7 percent rise in non-interest income to P55.46 billion from P50.99 billion on the back of higher earnings from fees and commissions.

During the quarter, the industry was able to control the rise in non-interest expenses at 3.6 percent to P131.97 billion from P127.41 billion.

Philippine banks also reported a 9.4 percent drop in provision for credit losses and other financial assets to P20.99 billion from P23.18 billion.

Likewise, the sector also booked a 72.3 percent plunge in the amount of bad debts written off to P951.87 million from P3.43 billion.

For January to March this year, BDO Unibank led by bankero Nestor Tan reported a 13 percent increase in net income to P11.7 billion, followed by state-run Land Bank of the Philippines headed by bankero Cecilia Borromeo with a 141 percent jump to P13.2 billion, Metropolitan Bank & Trust Co. (Metrobank) led by bankero Fabian Dee with a 27.1 percent surge to P7.8 billion, Bank of the Philippine Islands (BPI) of bankero TG Limcaoco with a 60 percent jump to P8 billion, and Philippine National Bank (PNB) led by bankero Wick Veloso with a 57 percent jump to P2.8 billion.