MANILA, Philippines – The net income of Ayala-led Bank of the Philippine Islands (BPI) slightly improved by 3% to P23.08 billion in 2018, the company announced on Wednesday, February 20.

BPI’s earnings growth last year was a slight improvement from 2017’s 1.7%.

The bank’s total revenues increased by 10.6% to P78.52 billion, driven by growth in net interest income, which reached P55.84 billion.

Meanwhile, loans grew at 12.7% to P1.35 trillion, boosted by strong growth in corporate and credit card loans at 13.3% and 23.8%, respectively.

Total deposits slightly grew by 1.5% to P1.59 trillion.

The bank’s growth came as the Bangko Sentral ng Pilipinas implemented an aggressive interest rate hike in 2018 to curb high inflation. 

BPI’s operating expenses stood at P43.6 billion, 13.8% higher year-on-year.

The bank said it continued to invest in digitalization and microfinance networks.

“The returns from these investments will become apparent in the coming years. We’re quite excited by what 2019 offers,” said BPI president and chief executive officer Cezar Consing.

BPI was also aggressive in raising capital in 2018, tapping the equity and debt capital markets with a stock rights offer amounting to P50 billion, $600 million in senior unsecured bonds, and P25 billion worth of fixed rate bonds.

“The capital that we raised in 2018 allowed us to invest in our ongoing digitalization program, and in our high yielding [small, medium enterprises], consumer, and microfinance businesses,” Consing said. – Rappler.com