The Market Monitor Minding the Nation's Business
The Ayala-led Bank of the Philippine Islands (BPI) reported a first-half net income of P12.67 billion, up 35.6 percent from a year ago.
Comprehensive income was P13.94 billion, up 53.5 percent, BPI reported to the Philippine Stock Exchange (PSE).
BPI declared total dividends of P3.54 billion, or 90 centavos per share, in June. As a result, book value of equity rose P11.10 billion in the first semester.
BPI posted total revenues growth of 20.9 percent to P35.2 billion. Return on assets (ROA) and return on equities (ROE) were 1.6 percent and 16.4 percent, respectively.
Total loans stood at P904.38 billion, which was 18.6 percent higher and driven largely by gains in corporate loans, which expanded by 20.4 percent.
Gross 90-day nonperforming loans dropped to 1.6 percent from 1.8 percent. Reserve cover rose to 117.8 percent. Total deposits stood at P1.33 trillion, an increase by 10.8 percent year-on-year. CASA ratio was 73.5 percent.
Net interest income improved by 9.6 percent to P20.7 billion.
Non-interest income climbed 41.7 percent to P14.5 billion, with the growth attributed to securities trading, bank fees and commissions, bancassurance, and capital markets.
BPI reported that total assets during the period reached P1.58 trillion, higher by 11.2 percent, or P159.07 billion, from the same period last year.
Total capital was P160.79 billion, up 7.4 percent. Capital adequacy ratio (CAR) and capital equity tier 1 (CET 1) ended at 13.9 percent and 13 percent, respectively.
“Unusually strong markets results complemented steady growth in client revenues. The quality of our client business is high, and we are scaling up to do more and more,” BPI President and CEO Cezar P. Consing said.
BPI experienced robust client volumes in the first half of the year against a backdrop of choppy markets and the elections.
The bank’s business with top corporates grew 25.5 percent, driving growth in overall corporate business to 20.4 percent. The bank’s recently made landmark financings, including the P12.5 billion in debt for AP Renewables’ Tiwi- Makban geothermal plant, the first climate bond ever issued in the emerging markets; and significant participation in the largest outbound acquisition by Monde Nissin’s purchase of UK’s Quorn Foods, a deal valued at P38.8 billion.
BPI Capital is currently the domestic lead underwriter for the recently-filed initial public offering of Pilipinas Shell, the country’s second-largest fuel retailer.
It was also a joint issue manager for DoubleDragon’s P10-billion preferred shares offering earlier this year.