BPI posts P30.5B net income in Q3

The Bank of the Philippine Islands has generated a net income of P30.5 billion for the first nine months of 2022 on higher revenues and lower provisions.

In a statement, the BPI said that return on equity (ROE) stood at 13.73 percent and return on assets (ROA) at 1.66 percent.

"Excluding the impact of the one-off gain from the sale of property in the second quarter and adjustments because of the CREATE (Corporate Recovery and Tax Incentives for Enterprises) Law, net income would have been P26.8 billion on ROE of 12.05 percent and ROA (return on assets) of 1.46 percent," the BPI said.

"Total revenues reached P87.5 billion, up 22.1 percent year-on-year, boosted by the 20.5-percent growth in net interest income to P61.6 billion on the back of continued loan growth and sustained expansion in average net interest margin for the year by 23 basis points [bps] to 3.53 percent," the bank added.

Non-interest income

Meanwhile, BPI said its non-interest income grew 26.2 percent to P25.8 billion, driven by the one-off gain in an asset sale, foreign exchange transactions, and credit card business fees.

The bank also said its total operating expenses stood at P40.1 billion, up 9.9 percent compared to the previous year, on higher regulatory, technology, and transaction-related costs.

Cost-to-income (CIR) ratio was 45.8 percent. Excluding the impact of the asset sale, CIR was at 48.6 percent.

"The Bank booked provisions of P7.5 billion, a 26.8-percent reduction from last year. Asset quality continued to improve with NPL [non-performing loan] ratio at 1.94 percent and NPL coverage ratio at 176.9 percent as of September 2022," it added.

Taxes paid

Meanwhile, taxes paid and accrued rose to P17.2 billion. For the third quarter of the year, the bank generated a net income of P10.1 billion, driven by higher revenue growth to P29.8 billion, up 26.8 percent on double-digit growth from net interest income and non-interest income, and growth in the customer base to over nine million.

"As of September 30, total loans stood at P1.6 trillion, up 15.4 percent year-on-year, led by growth in the credit card, corporate/SME, and auto portfolios of 29.1 percent, 16.4 percent, and 12.1 percent, respectively," the BPI said.

CASA Ratio stood at 76.1 percent, and the Loan-to-Deposit Ratio at 78.7 percent as of September 2022.

Total assets reached P2.5 trillion, reflecting an 11.8 percent growth year-on-year. Total equity stood at P313.4 billion, with an indicative Common Equity Tier 1 Ratio of 15.9 percent and a Capital Adequacy Ratio of 16.8 percent, both above regulatory requirements.