SUMMARY
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MANILA, Philippines – The country’s third-largest lender by assets, Bank of the Philippine Islands (BPI), posted a net income of P13.2 billion in the first 9 months of 2012, up 37% from last year, on higher loans and trading gains.
The Ayala-owned bank said its revenues grew 17.6% during the period, thanks to the improvement in its net interest and non-interest incomes.
Net interest income or income from loans rose 7.8% despite the low interest rate environment, BPI said. Loans expanded 18% to P475 billion as corporate and consumer loans grew by 18% and 15%, respectively.
BPI President and CEO Aurelio Montinola III however noted that the bank “is faced with the risks of narrowing net interest margin amid the 25 basis point cut in the benchmark policy of the BSP.”
“Nevertheless, we will strive to maintain our margin at previous year’s level by continuously growing the higher yielding loan segments and the low cost current and savings deposit on the funding side,” he said.
BPI’s deposits reached P697 billion or a 12% increase from last year.
The bank’s non-interest income, on the other hand, jumped 34%, driven by higher securities trading gains.
At end of September, BPI’s market capitalization stood at P284 billion, the highest among domestic banks. – Rappler.com
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