Bank of Commerce led by bankero Michelangelo Aguilar reported a 53 percent jump in net income to a seven-year high of P1.2 billion last year from P784 million in 2020 despite the uncertainties brought about by the ongoing global health crisis.
“The results reflect the bank’s resiliency amidst the continuing challenges of the COVID-19 pandemic,” the banking arm of conglomerate San Miguel Corp. said in a statement.
The increase was mainly driven by prudent management of interest expenses at P697 million, 41 percent lower versus end 2020. Its non-interest income stood at P826 million, supported by a 19 percent growth in service charges and fees and commissions and gains on sale of acquired assets.
Amidst this increase in revenues, Bank of Commerce was able to limit operating expenses growth to three percent last year, despite additional technology investments.
The listed bank closed 2021 with P199.7 billion in assets, up 17 percent from the P171 billion in 2020, driven mainly by increased purchase of investment securities and a four percent growth in loans.
The asset growth was supported by a 15 percent rise in deposits to P172 billion.
With the fresh P55 billion from San Miguel’s SMC Equivest Corp., the capital base of Bank of Commerce jumped by 39 percent to P23 billion.
Bank of Commerce successfully raised P3.36 billion after selling 280.6 million common shares at P12 per share via an initial public offering (IPO) last month.
The proceeds from the fund raising activity would bankroll the bank’s lending activities and finance capital expenditure requirements in connection with the upgrading of its ATM fleet and its core banking system.
Bank of Commerce has a network of 140 branches and 261 ATMs strategically located nationwide.