BPI profit slips 1.9%

MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) registered a 1.9 percent decline in earnings due to the absence of one-off gains from the sale of securities in the first nine months.

In a report submitted to the Philippine Stock Exchange (PSE), the country’s third largest bank said its net income amounted to P17.05 billion from January to September, P330 million lower than the P17.38 billion registered in the same period last year.

“Our results show a good balance of growth and profitability. Earnings from lending operations and fee based businesses are good, and the investments we have been making in technology and digitization should allow for even stronger operating and financial results going forward,” said BPI president and CEO Cezar Consing.

The bank’s securities position was at P296.58 billion, down 1.9 percent versus the same period last year. The securities portfolio is mostly in held-to-maturity at P268.94 billion, and thus less exposed to interest rate risk.

Comprehensive income declined 7.5 percent to P17.27 billion in the first nine months from P18.67 billion in the same period last year.

The Ayala-led bank reported a 5.2 percent rise in total revenue to P53.04 billion from P50.42 billion.

Net interest income increased 13.5 percent to P35.5 billion, supported by a wider average net interest margin and a higher loan-to-deposit ratio.

BPI reported a 20.5 percent expansion of its loan book to P1.2 trillion in the first nine months of the year reflecting the 24.3 percent rise in corporate loans. Gross 90-day non-performing loans (NPLs) improved to 1.47 percent from 1.64 percent.

On the other hand, total deposits also rose 14 percent to P1.5 trillion.

The bank’s non-interest income declined 8.4 percent to P17.54 billion, mainly due to the absence of significant one-off trading gains similar to those realized in June 2016.

It posted higher fee-based income, surging 20.1 percent year-on-year, coming from investment banking, asset management and trust, deposit-related fees, and credit cards.