Bank of the Philippine Islands, the fourth-largest lender in terms of assets, said Thursday it will issue the first tranche of long-term negotiable certificates of time deposits worth P30 billion this year to fund expansion.
BPI said in a disclosure to the stock exchange it received the go-signal from the Bangko Sentral ng Pilipinas to issue the notes Thursday.
BPI said it received an advice “that the Monetary Board approved the request of BPI for authority to issue long-term negotiable certificates of time deposit in the aggregate amount of up to P30 billion.”
“The LTNCTD will be issued in one or more tranches with the first tranche targeted to be issued
within the year, subject to prevailing market conditions. The issuance will support BPI’s expansion plans and diversify the bank’s funding sources,” BPI said.
LTNCDs are time deposits that have a maturity of at least five years. The LTNCDs shall be insured with the Philippine Deposit Insurance Corp. for up to the maximum insurance coverage and subject to PDIC’s applicable rules and regulations.
BPI sad it posted a 7.7-percent decline in net income to P11.7 billion from a year ago, because of lower trading gains.
Total revenues closed flat at P35.3 billion, but net interest income increased 13.6 percent to P23.5 billion, supported by a wide average net interest margin and a higher loan-to-deposit ratio.
Operating expenses increased 5.4 percent to P18.3 billion, on increased spending in technology and, to a lesser extent, higher regulatory costs.
Provisions reached P2.5 billion, as originally budgeted. BPI anticipates continued discipline in managing operating expenses for the remainder of the year.
Total loans went up 16.9 percent to P1.1 trillion, driven largely by corporate loans which grew 19.5 percent. Deposits grew 8 percent to P1.4 trillion, while current and savings account ratio was 73 percent.