Ayala-led Bank of the Philippine Islands (BPI) is spending more on technology investments in 2021, as the pandemic accelerated the growth of digital transactions.
In a briefing on Thursday, April 22, BPI chief financial officer Maria Theresa Marcial-Javier said the bank will spend 10% of revenues or 18% of total operating expenses on technology investments.
During its annual stockholders’ meeting, BPI said that over 92% of transactions are done digitally, while 8% are still done in its branches. (READ: BPI eyes acquiring Citi’s Philippine retail business)
BPI chief operating officer Ramon Jocson noted that transactions in digital channels may rise by as much as 40% even after the pandemic.
This is not to say that BPI will leave its branches and move to digital. Rather, it plans to push for more measures to complement both channels.
BPI saw its net income fall by 21.7% to P5 billion in the 1st quarter of the year.
The bank said the decline was due to the one-time tax adjustments in connection with previously booked loan provisions and the effectivity of the Corporate Recovery and Tax Incentives for Enterprises law.
Total revenues from January to March dipped by 1.5% to P24.3 billion, as net interest income dropped by 6.5%.
Meanwhile, non-interest income went up by 12.1% to P7.4 billion on the back of robust fee income.
The bank’s operating expenses declined further by 2.3% to P11.8 billion.
BPI also lowered its bad loans provisioning by 12.7% to P3.6 billion.
Non-performing loans ratio was at 2.76%, while NPL coverage ratio was at 123.5%. – Rappler.com