earnings reports

BPI net income rises 52% to P12.1 billion in Q1

Lance Spencer Yu

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BPI net income rises 52% to P12.1 billion in Q1
The Ayala-led bank’s surge in profits is driven mostly by net interest income

MANILA, Philippines – The Bank of the Philippine Islands (BPI) posted a net income of P12.1 billion for the first quarter of 2023, up 52% from the same period last year, driven by growth in its asset base and margins as well as lower provisions.

The universal bank saw its total revenues grow by 25.1% to P31.7 billion, mainly due to net interest income, which climbed by 27.2% to P24.2 billion. Net interest margins also widened by 52 basis points to 3.94%. 

Non-interest income went up by 18.6% to P7.6 billion, which BPI attributed to higher credit card billings and charges, gains in securities trading, and fees from investment banking project finance deals.

Total operating expenses rose by 19.7% year-on-year during the first quarter, reaching P15.1 billion to finance increases in manpower, digitalization incentives, targeted marketing campaigns, and higher transaction-related processing fees.

But even with the increase in expenses, the cost-to-income ratio improved to 47.5%.

Looking at BPI’s balance sheet as of the first quarter, total assets expanded by 12.4% to P2.7 trillion. On the other side, total loans rose by 13.6% to P1.7 trillion on growth from the bank’s corporate, credit card, and auto portfolios. Total deposits also rose to P2.1 trillion, up 13.6%.

BPI said its asset quality remained strong, as its non-performing loan ratio improved to 1.82% from 2.38%. The bank’s NPL coverage ratio reached 176.71%.

It also set aside P1 billion year-to-date in provisions. This was 60% lower than the P2.5 billion recorded over the same period last year, as BPI noted that “asset quality has been on an improving trend.”

The Ayala-led bank recently launched its new banking app. The app has a revamped user interface with a new set of technologies that the bank said will allow it to roll out features at a faster pace.

In May, BPI is set to release “AI-powered insights” on the app, which will “offer financial advice, payment reminders, and actionable tips” generated by artificial intelligence. – Rappler.com

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Lance Spencer Yu

Lance Spencer Yu is a multimedia reporter who covers the transportation, tourism, infrastructure, finance, agriculture, and corporate sectors, as well as macroeconomic issues.