Bank of the Philippine Islands, the third-largest lender in terms of assets controlled by the Ayala Group, said Thursday net income fell 22 percent in the first quarter to P5 billion from P6.39 billion a year ago.
“While net income before taxes for the period was 5.1 percent higher, net income after taxes was 21.7 percent lower due to one-time tax adjustments in connection with previously booked loan provisions because of the effectivity of the CREATE law,” BPI said in a disclosure to the stock exchange.
Revenues went down by 1.5 percent in the first quarter to P24.3 billion. Net interest income also dropped 6.5 percent to P16.9 billion, on 31-basis-point contraction in net interest margin to 3.31 percent.
Non-interest Income increased by 12.1 percent to P7.4 billion on the back of robust fee income which increased by 27.8 percent to P5.7 billion. This boost came from higher fees from the bancassurance, asset management, transaction banking and investment banking businesses.
Total loans declined 5 percent to P1.4 trillion as of end-March while deposits were flat at P1.7 trillion.