SMC banking arm nets P147 million in Q1

MANILA, Philippines — The banking arm of food-to-infrastructure conglomerate San Miguel Corp. (SMC) booked a net income of P146.91 million in the first quarter, reversing the P122.94 million net loss in the same period last year, on lower provision for credit and impairment losses.

Based on financial statements submitted to the Philippine Dealing and Exchange Corp. (PDEx), Bank of Commerce said its net interest income went up by 10.9 percent to P1.38 billion in the three months to March

Other income declined by 17 percent to P140.84 million as it incurred higher losses from trading and investment securities as well as foreign exchange transactions.

Bank of Commerce earmarked P59.86 million for potential loan losses arising from the impact of the COVID-19 pandemic in the first quarter, 72 percent lower than the P217.34 million allocated for credit and impairment losses last year.

The bank’s profit went up by 20.2 percent to P784.43 million in 2020 due to higher trading and investment securities gains despite the COVID-19 pandemic.

The bank’s provision for credit and impairment losses soared to P962.51 million last year or more than 18 times the P52.09 million allocated in 2019 in anticipation of higher defaults due to uncertainties brought about by the pandemic.

Assets stood at P195.39 billion in end-March or 14.3 percent higher than the P170.92 billion in end-2020.