BPI posts flat net income of P6.25 billion in Q1 2018

MANILA, Philippines – The Bank of the Philippine Islands (BPI) saw a flat net income of P6.25 billion during the 1st 3 months of 2018, due to lower non-interest income as well as higher costs and expenses.

BPI, the Philippines' 3rd largest bank in terms of assets, told the Philippine Stock Exchange (PSE) on Monday, May 7, that its net income for the 1st quarter of the year remain unchanged from the P6.25 billion recorded in the same period a year ago.

Its revenues slightly increased by 2.7% to P18.45 billion during the 1st quarter of 2018, from the P17.96 billion in the same period in 2017.

BPI saw its net interest income rise by 8.9% to P12.51 billion in the 1st 3 months of 2018, from P11.49 billion, driven by the expansion in average asset base.

The lender's interest income from loans grew by 18.4%, on the back of improved loan yields.

The growth in interest income from loans, however, was tempered by the higher interest expense, partly due to higher documentary stamp tax (DST) rates on deposits that increased the cost of funds by 5 basis points. (READ: A history of trust: The Philippines' first bank)

BPI's total loan book surged by 17.2% to P1.21 trillion in the 1st quarter of 2018, from P1.03 trillion in the same period in 2017, thanks to higher corporate loans.

Its deposit base also booked a double-digit growth of 10.4% to P1.59 trillion in the 1st quarter of 2018, from P1.44 trillion in the same period a year ago.

BPI remains less exposed to interest rate risk, as its holding in securities only increased by 2.3% to P309.95 billion, with about 90% of the portfolio hold-to-collect.

Meanwhile, its non-interest income decreased by 8.1% to P5.94 billion, compared to P6.46 billion, dragged by lower income from trust and investment management fees, securities trading, as well as asset sales.

BPI added that manpower costs and premises costs were higher by 9% due to increased headcount and the buildup of microfinance branches. – Rappler.com