Bank of Commerce profit up in 9 months

MANILA, Philippines — The earnings of the banking unit of diversified conglomerate San Miguel Corp. (SMC) increased by 26.3 percent to P625.72 million from January to September compared to P495.29 million in the same period last year on the back of higher net interest income and lower expenses.

Based on the financial statement submitted to the Philippine Dealing and Exchange Corp. (PDEx), Bank of Commerce reported a 7.2 percent increase in net interest income to P3.99 billion from January to Sepermber compared o P3.72 billion in the same period last year.

The bank’s interest income slipped by 3.9 percent to P4.51 billion from P4.71 billion, while interest expense fell by 47.6 percent to P518.33 million from P989.4 million on lower interest rates on deposit liabilities.

The other income of Bank of Commerce was cut by more than half to P662.04 million from P1.43 billion after it reported a P10.57 million net loss in trading and investment securities as well as the 46.2 percent drop in foreign exchange gains to P20.49 million from P38.08 million.

Earnings from service, charges, fees, and commissions increased by 24.7 percent to P385.69 million from P309.37 million.

Likewise, Bank of Commerce booked a P231.04 million gain from the foreclosure and sale of property, 4.5 times last year’s P50.79 million.

The bank also reported a 16.5 percent decline in expenses to P3.69 billion from January to September compared to P4.42 billion in the same period last year.

During the nine-month period, Bank of Commerce gained P4.07 million from the reversal of provision for credit and impairment losses. In the same period last year, the bank allocated P767.13 million for potential loan losses.

Assets of the banking arm of SMC amounted to P195.28 billion in end September.

SMC, through SMC Equivest Corp., invested P5.5 billion more into Bank of Commerce to boost  the company’s efforts to upgrade into a universal bank from a commercial bank.

SMC president and chief operating officer Ramon Ang earlier said the additional investments affirms the conglomerate’s optimism and strong growth outlook of in the banking sector, as well as its commitment to support Bank of Commerce in expanding its business prospects and advancing towards becoming a universal bank.

“We’re confident that in this time of pandemic, the banking sector will be essential to our country’s economic recovery, and will provide invaluable help both to our industries and Filipinos,” Ang said in a statement.

Ang, who is also chairman and president at SMC Equivest, added Bank of Commerce could “help fulfill the needs of both businesses and consumers for loans and other financial services at this critical time.”

Prior to such subscription, SMC Equivest owned 4.69 percent of the outstanding capital stock of Bank of Commerce comprising of common shares.

The SMC Group, through real estate arm San Miguel Properties Inc. (SMPI) and San Miguel Corp. Retirement Plan (SMCRP), owns 39.94 percent of the issued shares of Bank of Commerce.