Bank of the Philippine Islands (BPI), the lending arm of Ayala Corp., saw its 2023 net income soar to an all-time high of P51.7 billion, up 30.5 percent from P39.6 billion in 2022, driven by record revenues and lower provisions which offset the increase in operating expenses.
Minus the impact of the one-off gain from the 2022 property sale, net income would be higher by 44.1 percent, the company said in a stock exchange filing Friday.
BPI said fourth quarter net income also jumped 44.3 percent year-on-year to P13.1 billion led by higher revenue growth and lower provisions recognized.
“The bank’s solid financial performance is a reflection of its strengthened customer franchise and deeper customer engagement which led to record volumes and market share gains in several businesses,” it said.
Total revenues rose 16.7 percent to P138.3 billion year-on-year, on the back of a 22.7-percent increase in net interest income to P104.4 billion, as average asset base expanded 7.7 percent and net interest margin widened 50 basis points to 4.09 percent.
Non-interest income rose 1.5 percent to P34 billion, buoyed by record trading income gains of P5.2 billion, up 37 percent year-on-year.
Fee income declined 3 percent to P28.8 billion. Removing the impact of the 2022 one-off transaction, fee income would be higher by 16.6 percent to P4.1 billion on higher fees from credit cards, various service charges and bancassurance.
Operating expenses increased 19.2 percent to P69.1 billion, led by higher manpower, technology and marketing costs.
BPI booked provisions of P4 billion in 2023, down 56.4 percent from last year as asset quality remained strong.
Total loans reached P1.9 trillion, a 10.5-percent increase over the previous year, on strong growth across all portfolios while deposits went up 9.5 percent to P2.3 trillion, mainly from the growth in time deposits which tempered the decline in current and savings accounts (CASA).
Total assets grew 10.9-percent to P2.9 trillion, while total equity stood at P357.2 billion
BPI fully merged with Robinsons Bank Corp. on Jan. 1, 2024. “This merger will expand reach and enrich the overall banking experience of its customers by unlocking synergies within the BPI Group and Gokongwei ecosystems,” BPI said.
