Bank of the Philippine Islands, the third-largest lender in terms of assets, said Thursday net income jumped 28.8 percent year-on-year in the second quarter to P6.8 billion, its highest quarterly profit since the start of the pandemic.
BPI said in a statement the second-quarter profit was also 36.3 percent higher than in the first quarter, “due to lower provisions recognized.”
The figure brought net income in the first half to P11.8 billion, up 1.2 percent from a year ago.
The bank said revenues in the first six months declined 6.7 percent to P48.1 billion as net interest income dropped 6.6 percent to P33.9 billion and net interest income contracted by 24 basis points from 3.56 percent to 3.32 percent. Earning asset yields declined by 85 basis points.
“While non-interest income was down by 7.1 percent to P14.3 billion largely due to lower trading income, fees and commissions showed a growth of 37.2 percent across fee-based businesses,” the bank said.
Total operating expenses rose 3 percent in the first semester to P24.1 billion. Cost-to-income ratio stood at 50.1 percent, a 4.75-ppt increase from 45.3 percent a year ago.
The bank booked provisions of P6.5 billion, lower by 55.7 percent than P14.7 billion it booked in the same period last year. Non-performing loan ratio was 2.94 percent, with NPL coverage ratio at 120.3 percent.
Total loans as of June 30 declined 4.5 percent to P1.4 trillion, on softer demand for corporate, SME and auto loans.
Deposits went down by 4.5 percent year-on-year to P1.7 trillion. Current and savings account grew 10.7 percent, offsetting a 43.1-percent decrease in time deposits. The bank’s CASA ratio was 83.2 percent, while the loan-to-deposit ratio was 80.8 percent.
Total assets declined 3 percent year-on-year to P2.2 trillion. Total equity increased to P285.8 billion, with an indicative common equity tier 1 ratio of 16.95 percent and a capital adequacy ratio of 17.82 percent, both above regulatory requirements.
Return on equity was 8.4 percent while return on assets was 1.1 percent.
BPI was recently named the Best Sustainable Bank in the country by FinanceAsia for its forward-looking sustainability initiatives. Also in the FinanceAsia Country Awards 2021, BPI Capital was recognized for its excellence in investment banking, garnering the Best Investment Bank, Best Equity Capital Market House and Best Debt Capital Market House awards.
Alpha Southeast Asia recognized BPI Family Savings Bank as the Best SME Bank in the Philippines for the 8th consecutive year, BPI as the Best Trade Finance Bank in the Philippines for the 7th consecutive year and BPI Capital as the Best Investment Bank in the Philippines for the third consecutive year.