Robinson Bank profit inches up 1.4% in first half of 2018
Lawrence Agcaoili (The Philippine Star) - August 22, 2018 - 12:00am

MANILA, Philippines — Gokongwei-led Robinsons Bank Corp. reported a net income of P211.4 million from January to June, P2.8 million higher than the P208.6 million recorded in the same period last year.

The bank’s operating income booked a double-digit growth of 14 percent to P1.92 billion from P1.68 billion, while expenses climbed nine percent to P1.6 billion from P1.5 billion.

Robinsons Bank said interest income jumped by nearly 40 percent to P2.61 billion from P1.87 billion as loans and receivables surged 2.6 percent to P2.04 billion from P1.43 billion.

On the other hand, interest expense more than doubled to P907.34 million from P455.57million with the issuance of P4.18 billion worth of long-term negotiable certificates of deposits (LTNCDs) last year. This resulted in a 20.5 percent increase in net interest income to P1.7 billion from P1.41 billion.

The bank’s other income fell by 31.3 percent to P62.3 million due to decreases in trading and securities gains that was offset by higher net service fees and commissions as well as foreign exchange gains.

The volatile markets resulted in an 86.2 percent plunge in trading and securities gains to P13.63 million in the first half from P99.05 million in the same period last year.

On the other hand, the bank’s gains from foreign exchange operations jumped by 50 percent to P109 million from P72.63 million.

Likewise, service fees and commission income grew by 23 percent to P81.18 million from P65.99 million.

For the second quarter alone, the bank’s net income dropped by more than 43 percent to P89.85 million from P159.03 million as operating income grew by 10.3 percent to P942.29 million from P837.64 million, while operating expenses went up 12.6 percent to P807.08 million from P716.91 million.

During the period, interest expense surged by 92 percent to P454.63 million from P236.95 million, while trading and securities gains plunged 86.1 percent to P5.52 million from P39.8 million.

The bank’s total resources stood at P109.02 billion as of end-June.

Robinsons Bank has 134 branches while its subsidiary Legazpi Savings Bank acquired in 2012 has 12 branches.

JG Summit Capital Services Corp. controls the bank with 60 percent, while Robinsons Retail Holdings Inc. own the remaining 40 percent.

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