Bank of Commerce profit steady at P366 million

MANILA, Philippines — Earnings of Bank of Commerce, the banking unit of diversified conglomerate San Miguel Corp. (SMC), slightly declined in the first nine months, largely due to the huge provision for potential soured loans.

Based on the financial statements submitted to the Philippine Dealing and Exchange Corp. (PDEx), Bank of Commerce reported a net income of P365.68 million in January to September compared to P368.78 million in the same period last year.

The bank earmarked P894.65 million for possible credit and impairment losses during the period due to the impact of the coronavirus disease 2019 or COVID-19 pandemic.

Net interest income jumped 25.6 percent to P3.75 billion while interest expense plunged 49.7 percent to P989.4 million from P1.97 billion on lower interest rates.

Its other income surged by 43 percent to P1.43 billion as trading and investment securities gains tripled to P996.42 million.

The rise was enough to offset the 9.8 percent decline in income from service, charges, fees and commissions as well as the 78 percent plunge in gains on foreclosure and sale of property and equipment to P50.79 million.

Other expenses surged 36.7 percent to P4.55 billion due to higher provisions for potential soured loans.