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BPI posts 7.6% increase in 1Q 2019 net income

April 26, 2019 - Friday 9:04 AM by Jon Joaquin

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MAKATI CITY -- The Bank of the Philippine Islands (BPI) posted P6.72 billion in net income in the first quarter of 2019, up 7.6% from P6.25 billion in the same period last year, and up 10.8% versus the fourth quarter of 2018. Comprehensive income was at P8.51 billion.

In a statement released in time for its annual stockholders meeting on April 25, 2019, BPI said its total revenues for the first quarter increased by 23.5% to P22.78 billion, driven by 28.8% year-on-year growth in net interest income, which reached P16.05 billion.

"The increase in net income was a result of an 8.8% increase in average asset base, and a 50-basis point expansion in net interest margin (NIM) to 3.39%. Yield on interest-earning assets improved by 109 basis points, partially offset by the increase in cost of funds owing to higher time deposit rates, and an increase in other borrowings,” the bank said.

BPI said its total loans as of March 31, 2019 stood at P1.35 trillion, reflecting a growth of 11.5% year-on-year, boosted by strong growth in corporate loans, credit card loans, and housing loans at 11.8%, 20.3% and 9.9%, respectively.

Total deposits reached P1.61 trillion, up 1.3%, while the bank’s CASA (current and savings account) ratio stood at 70.3% while the loan-to-deposit ratio (LDR) was at 83.9%.

Non-interest income registered a 12.4% increase versus the same period last year to P6.73 billion, attributed to increases in transaction-based service charges, credit card and rental businesses, and income from assets sold, BPI said.

"Operating expenses totaled P12.07 billion in the first quarter of 2019, an increase of 23.8% year-on-year, across all major categories, and primarily in technology and premises, reflecting the impact of the bank’s continued investments in technology, digitalization, and its microfinance branch network. Cost-to-Income ratio was 53.0%, slightly up from 52.8% in the first quarter of 2018. Provision for losses of P1.80 billion was 13.2% lower than the fourth quarter of 2018. NPL ratio stood at 1.85%. The Bank’s total loss coverage, including allowances for contingent exposures, stood at 95.7%,” BPI said.

The bank’s securities holdings as of March 31, 2019 totaled P354.66 billion, up 14.4% year-on-year. “About 84% of the securities portfolio was in Hold-to-Collect, and thus less exposed to market volatility,” BPI said.

At the end of March 2019, the Bank’s total assets stood at P2.08 trillion, up 8.9%, and Return on Assets (ROA) was 1.34%. Total capital reached P257.11 billion, up 35.6% on account of the stock rights offering (SRO) in May 2018. Return on Equity (ROE) was 10.7%, lower by 2.9 percentage points, reflecting the impact of the dilution from the SRO. Indicative Capital Adequacy and Common Equity Tier 1 ratios were at 16.57% and 15.68%, respectively.