Bank of the Philippine Islands (BPI) recorded its highest quarterly income of P17.4 billion in the third quarter, reflecting a 29.4 percent growth compared to the same period last year due to strong demand for loans across customer segments.

As a result, BPI also reached a record nine-month net income of P48 billion or 24.3 percent higher than the year-ago level, data from the bank’s disclosure to the Philippine Stock Exchange on Thursday showed.

BPI said its total revenues jumped by 24.7 percent to P125.8 billion as net interest income surged by 22.2 percent to P93.8 billion on the back of expanded loan portfolio.

Loans grow P2.1T

Gross loans rose to P2.1 trillion by 18.9 percent as personal loans grew by 103 percent while business loans and microfinance increased by 99 percent and 65 percent, respectively.

Non-performing loans (NPL) ratio slightly increased by 10 basis points to 2.3 percent amid a still relatively high benchmark interest rate of over 6 percent but falling inflation rates.

To mitigate risks, BPI expanded loan provisions by 60 percent to P4.8 billion in the nine months.

Meanwhile, non-interest income rose by 32.4 percent to P31.9 billion due to trading gains, service and credit card fees, and insurance income.

Deposits increased by 14.5 percent to P2.5 trillion.

Non-interest income rose by 32.4 percent to P31.9 billion due to trading gains, service and credit card fees and insurance income.

Given the bank’s higher interest income over depositor liabilities, its net interest margin improved by 22 basis points to 4.29 percent.

Meanwhile, operating expenses grew by 22 percent to P59.4 billion as BPI improved manpower and technology resources, and continued to integrate Robinsons Bank into its system after their merger officially took effect in January.

Total assets stood at P3.2 trillion, up 17.2 percent while total equity settled at P433.3 billion.

As a result, return on equity stood at 15.9 percent while return on assets figured at 2.1 percent.

“Earnings per share for the first nine months stood at P9.10, up 16.5 percent from last year’s P7.81, notwithstanding the additional shares issued for the BPI and Robinsons Bank merger,” BPI said.