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Sunday, February 9, 2025

BPI earned record P62-b profit in 2024

Bank of the Philippine Islands (BPI) of the Ayala Group posted a record net income of P62 billion in 2024, up 20 percent from a year ago as its revenues grew at a double-digit rate, the bank said in a disclosure to the stock exchange Monday.

BPI said revenues grew 23 percent in 2024 to P170.1 billion, driven by a 22.3-percent increase in net interest income to P127.6 billion. Its average asset base also expanded 16.8 percent and net interest margin widened 22 basis points to 4.31 percent.

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Also supporting the higher revenues was the 25.3-percent growth in non-interest income to P42.6 billion, on the back of higher income from the credit card, wealth management and bancassurance businesses as well as gains from securities trading.

The higher revenues were partly offset by higher operating expense and provisions.

Operating expenses reached P83.8 billion, up 21.3 percent year-on year, on higher manpower, technology and volume-related expenses. Cost-to-income declined 71 basis points to 49.3 percent.

The bank’s full year provisions surged to P6.6 billion, up 65 percent from the 2023 level.

Non-performing loan (NPL) ratio was at 2.13 percent, with the NPL coverage ratio at 106.2 percent.

Total loans hit P2.3 trillion, a 18.2-percent increase over the previous year, inclusive of the portfolio acquired from the recent merger with Robinsons Bank Corp.

Minus this, organic loan growth settled at 13 percent, with institutional loans growing 11.1 percent and non-institutional loans, 41.7 percent.

Total funding grew 14.2 percent to P2.78 trillion, led by a shift from time deposits to bonds issuance as a more cost-efficient funding source.

Total deposits stood at P2.6 trillion, up 13.9 percent year-on-year, mainly from the growth in time deposits. Total assets went up 14.9 percent to P3.3 trillion.

Total equity stood at P430.5 billion, with an indicative common equity tier 1 ratio of 13.8 percent and a capital adequacy ratio of 14.5 percent.

BPI recorded a net income of P14.1 billion in the fourth quarter, up 8 percent year-on-year, on higher revenue growth.

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