Bank of the Philippine Islands (BPI) recorded net income of P13.74 billion in the first six months of 2019, up 24.6 percent from P11.03 billion a year ago on the back of powerful development in its interest and non-interest business.
In a report submitted by BPI assistant corporate secretary Josenia Jessica Nemeno to the Philippine Stock Exchange, the Ayala-led lender said its total revenue for the January to June period stood at P45.90 billion, up 23.2 percent driven by a 24.1 percent rise in net interest income at P32.36 billion.
As the complete assets of the bank amounted to P1,35 trillion, up 10.8 percent, boosted by corporate loans which increased by 11.6 percent and consumer loans which rose by 10.3 percent. Under the consumer segment, credit card payments continued to accelerate as they grew by 25.8 percent over the period.
Meanwhile, total deposits reached P1.66 trillion, up 8.0 percent year-on-year. BPI’s current account, savings account (CASA) deposit ratio stood at 68.3 percent, while loan-to-deposit ratio stood at 81.7 percent.
Non-interest earnings amounted to P13.54 billion, up 21.5 percent driven by rises in securities trading profits and fee-based earnings.
Securities position stood at P404.22 billion, up 33.4 percent as charges, commissions and other earnings increased by 16.1 percent over a wide spectrum of companies including loan cards, deposit goods, insurance, transaction banking, leasing, retail loans and digital channels.
Operating expenses stood at P24.28 billion, up 14.4 percent year-on-year on ongoing technology spending, ongoing build-up of fresh microfinance branches, and one-time manpower costs linked to the lately concluded collective bargaining agreements.
The cost-to-income ratio for the first semester was 52.9 percent, an improvement from 57.0 percent in the first half of 2018.
Total assets amounted to P2,13 trillion, up 12.3 per cent, with asset returns at 1,34 per cent. Total equity entered P259.88 billion, offering a powerful investment position for future development, with an indicative Common Equity Tier 1 ratio of 15.55 percent and a capital adequacy ratio of 16.44 percent.