Bank of Commerce (BoC), the banking affiliate of conglomerate San Miguel Corp., said Wednesday it chalked up a net income of P769.18 million in the first quarter of 2024, up 8 percent from P712.9 million in the same period last year, driven by the steady growth in its core business.
BoC said in a disclosure to the stock exchange its gross revenues rose 17 percent to P2.65 billion in the first quarter on the back of higher net interest income and service charges, fees and commissions.
Return on equity (ROE) was at 9.87 percent.
Net interest income, which comprises more than 80 percent of the bank’s total revenues, grew 1.2 times to P2.25 billion on steady expansion in lending and financial assets. This translated into a net interest margin (NIM) of 4.46 percent.
Other income went up 17 percent to P398.34 million, mostly coming from service charges, fees and commissions and real and other properties acquired (ROPA)-related gains.
Service charges, fees, and commissions expanded to P250.91 million due to investment banking, credit card and trust fees.
The bank also booked gains on the foreclosure and sale of property and equipment. It set aside P28.65 million as provision for credit and impairment losses.
Operating expenses, excluding provision for credit and impairment losses, climbed 18 percent to P1.61 billion from P1.36 billion last year, driven by increases in compensation and benefits, service fees and commission, taxes and licenses and rent and utilities
Total loans and receivables, accounting for more than 50 percent of total assets, rose 7 percent to P117.69 billion on the back of growth across all segments.
Gross non-performing loans (NPL) and net NPL ratios were at 1.47 percent and 0.37 percent respectively, down from 1.54 percent and 0.44 percent as of end-2023, reflecting improving asset quality.