MANILA, Philippines – Ayala-owned Bank of the Philippine Islands (BPI) posted a 27 percent increase in its unaudited net income to P16.3 billion last year from P12.8 billion in 2011.
In a disclosure to the Philippine Stock Exchange yesterday, BPI said the improved earnings could be attributed to the strong business volume and revenue growth as the Philippines likewise grew at a faster pace compared to other ASEAN economies.
Total resources reached P985 billion, or 17 percent higher than the previous year, as the bank’s core businesses remained solid.
The bank’s deposits expanded 18 percent to P802 billion while assets grew 11 percent to P743 billion.
The net loan portfolio also increased 16 percent to P527 billion as all markets sustained double-digit growth.
It said the consumer/middle market/SMEs segment grew 17 percent while the top tier corporates jumped 12 percent.
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BPI president and CEO Aurelio R. Montinola III said they expect to sustain their in loan performance this year.
“2012 was a banner year for BPI, as we generated record profits and exceeded our return on equity goal of 16 percent. We will aim for 12 to 15 percent loan growth in 2013,” he said.
This year, he said they hope to duplicate the earnings growth of the bank.
“Given significant securities trading gains last year and an even lower interest rate regime this year, our challenge for 2013 will be to deliver a meaningful earnings growth after a record 2012 performance,” he said.
The bank’s asset quality continued to improve, with its 30-day non-performing loan (NPL) ratio down to 1.46 percent from last year’s 1.87 percent.
Net interest income rose six percent as the average asset base went up by P64 billion.
Non-interest income was up by 25 percent due to higher trading gain on securities sold, other operating income, and fees and commissions.
Operating expense growth was managed at six percent coming from technology and occupancy related expenses and regulatory costs.
BPI’s capital stood at P338 billion as of end-2012.
The bank remains adequately capitalized with a Basel II capital adequacy ratio (CAR) of 14.2 percent and Tier 1 CAR of 12.8 percent. CAR measures the capability of the bank’s capital to absorb losses.