The Market Monitor Minding the Nation's Business
Ayala Group unit Bank of the Philippine Islands (BPI) achieved a full-year net income of P22.05 billion in 2016, growing by 20.9 percent with comprehensive income reaching P21.74 billion which was also a 30.2 percent improvement.
BPI President and CEO Cezar P. Consing said the bank led in both corporate and retail banking as it arranged some of the biggest energy loan capital raising activities and also focused on the stronger volumes from retail banking.
“We took advantage of 2016’s market conditions to exploit unique opportunities, while gearing for growth in 2017 and beyond. We led some critical financing transactions for corporate clients, spurring our country’s development in energy and infrastructure. In retail, we have positioned our teams for both stronger volumes and more focused risk management,” he said.
BPI’s revenues rose by 12.1 percent last year to P66.55 billion, bringing net interest income worth P42.38 billion higher by 9.7 percent.
Non-interest income (NIM) climbed 16.7 percent to P24.17 billion on strong gains related to the bank’s securities portfolio, and higher fees from core transactional and bancassurance businesses.
Operating expenses ended at P34.94 billion, up 9.6 percent, driven mainly by spending on general infrastructure, as well as collective bargaining costs. Provisions ended at P4.8 billion, up 20.7 percent.
Measuring profitability, BPI reported cost-to-income ratio of 52.5 percent, lower than the 53.7 percent in 2015.
Return on asset (ROA) and return on equity (ROE) were 1.4 percent and 13.8 percent, growing by 0.09 and 1.44 percentage points, respectively.
Total loans stood at P1.04 trillion, an increase by 19.2 percent composed of 79 percent corporate and 21 percent retail.
BPI reported that the strong relationships with corporate clients resulted to the bank’s business growth including its arranged P12.5-billion Climate Bond for AboitizPower’s Tiwi-Makban geothermal plant, and issuances of the P15 billion retail bonds for Ayala Land and the P19.2-billion Initial Public Offering of shares for Pilipinas Shell. RIZA LOZADA