BankCom income jumps 31% in first half

MANILA, Philippines — Bank of Commerce (BankCom) booked a 31-percent jump in earnings in the first half as revenues expanded and expenses were kept in check.

In a disclosure, the listed bank led by conglomerate San Miguel Corp. said its net income reached P1.86 billion from January to June, higher than the P1.42 billion in the same period last year on the back of strong growth in interest and trading income.

This translated to a return on equity of 11 percent and return on assets of 1.39 percent.

In the second quarter alone, BankCom posted a net income of P993.91 million, up 53 percent year-on-year and 15 percent higher than in the first quarter.

“BankCom’s strong financial results underscore its strategic focus on growth, operational efficiency and prudent risk management,” the bank said.

Gross revenues climbed by 16 percent to P6.06 billion, driven by a 14-percent increase in net interest income to P5.15 billion and a 31-percent surge in non-interest income to P912.52 million, largely from trading and foreign exchange gains.

The bank’s net interest margin improved to 4.27 percent as growth in earning assets outpaced the rise in interest-bearing liabilities.

BankCom’s cost-to-income ratio eased to 59 percent as the bank pursued revenue enhancement initiatives and exercised prudent spending.

Total loans and receivables rose by five percent to P143.58 billion, while asset quality remained healthy with a gross non-performing loan ratio of 1.34 percent and a net NPL ratio of 0.53 percent.

Deposits slipped by four percent to P203.82 billion due to seasonality in the use of large business accounts.