The Bank of the Philippine Islands (BPI) posted a net income of P50.5 billion in the first nine months, up by 5.2 percent from P48 billion a year ago, as higher revenues offset the rise in expenses and loan-loss provisions.
The 174-year-old bank said its performance was anchored on sustained loan growth and stronger non-interest income streams, particularly from credit cards, wealth management and trading.
Total revenues rose by 13.2 percent year-on-year to P142.3 billion, supported by a 16.2-percent surge in net interest income to P109.1 billion. The improvement was driven by an 8.7-percent expansion in the average earning asset base and a 30-basis point rise in net interest margin to 4.6 percent.
Non-interest income also climbed by 4.2 percent to P33.3 billion, buoyed by the bank’s fee-based businesses and market-related gains.
Despite rising costs tied to business expansion, manpower and technology investments, BPI said it maintained operational efficiency.
Operating expenses grew by 10.3 percent to P65.5 billion, but the cost-to-income ratio improved by 118 basis points to 46 percent, supported by strong top-line growth.
The bank’s asset quality remained sound, with a non-performing loan ratio of 2.3 percent as of end-September. After booking P11.8 billion in provisions for potential credit losses, the NPL coverage ratio stood at 96.5 percent.
Total assets expanded by 9.3 percent year-on-year to P3.5 trillion, while gross loans climbed by 13.3 percent to P2.4 trillion, led by non-institutional borrowers.
Deposits also increased by 7.7 percent to P2.7 trillion, with current and savings accounts rising by 4.3 percent to P1.6 trillion, equivalent to a CASA ratio of 61 percent. The loan-to-deposit ratio stood at 90.3 percent.
BPI’s capital position remained strong, with total equity rising by 9.6 percent to P474.8 billion from a year earlier. The bank’s common equity tier 1 ratio was 14.9 percent, while its capital adequacy ratio reached 15.8 percent, both comfortably above regulatory requirements.
The Ayala-led lender also marked a milestone in October with the opening of BPI Wealth Singapore, a wholly owned subsidiary that signals the bank’s expansion in Asia.
‘The launch represents BPI’s continued expansion in Asia and its commitment to providing Filipino and regional clients access to one of the world’s most dynamic financial centers,’ the bank said.