Robinsons Bank profit falls to P40 M

MANILA, Philippines — Earnings of Gokongwei-led Robinsons Bank Corp. fell 67 percent to P40.1 million in the first quarter due to higher operating and interest expenses.

The country’s 19th largest lender owned by taipan John Gokongwei said the decrease was brought about by the 19.9 percent rise in operating expenses to P952.58 million.

The increase was partly offset by the 8.8 percent increase in total operating income to P1.05 billion while interest income jumped 33.85 percent to P1.73 billion on account of significant improvement in loan-related activities and financial investments during the period.

Robinsons Bank said interest on loans and receivables went up by 40.5 percent to P1.4 billion due to its significantly bigger loan portfolio, while interest on financial investments grew by 22.2 percent to P302.5 million due to a higher level of financial investments this year.

Meanwhile, interest on deposits with the Bangko Sentral ng Pilipinas (BSP) and other banks declined by 15.4 percent to P9.93 million as well as Interest on interbank loans receivables and securities purchased under resale agreement dropped by 57.3 percent to P14.52 million.

Likewise, interest expense surged by 85.2 percent to P838.35 million due to significant increase in deposits and bills payable, particularly from the 71.1 percent jump in related interest expenses on bank deposit products to P772.56 million.

Other income increased by 15.7 percent to P157.1 million due to increases in net service fees and commission income as well as trading and securities gains.

The increase in these line items, however, was partly offset by the 81.7 percent drop in foreign exchange gains to P14.84 million.

Robinsons Bank, 60 percent owned by JG Summit Capital Services Corp. and 40 percent by Robinsons Retail Holdings Inc., acquired Albay-based Legazpi Savings Bank Inc. in December 2012.