Ayala-led Bank of the Philippine Islands (BPI) saw its profits drop by 25.7% to P21.4 billion in 2020, as the economy succumbed to recession due to the coronavirus pandemic.

In a disclosure to the Philippine Stock Exchange on Thursday, January 28, BPI reported a sharper 37.4% drop in earnings in the 4th quarter, as it jacked up provisions for loan losses.

BPI set aside P28 billion in bad loan buffers, 5 times more than it allocated in 2019.

Non-performing loan ratio stood at 2.68%.

Despite the headwinds faced by the banking sector, BPI was able to retain its credit ratings from S&P at BBB+, Moody’s at Baa2, and Fitch at BBB-.

Total revenues for 2020 jumped by 10.5% to P101.9 billion, as both non-interest and net interest income grew by 11.1% and 10.2%, respectively.

The bank’s total loans stood at P1.4 trillion, 4.6% lower than in 2019, due to a slowdown in corporate lending. (READ: Cautious Philippine banks won’t lend despite Bangko Sentral easing)

Mortgage and microfinance loans posted moderate growth rates of 6.6% and 5.7%, respectively.

BPI’s total assets stood at P2.2 trillion, higher by 1.3%.

Should its plans of absorbing its subsidiary BPI Family Savings push through this year, total assets could rise further and make it the country’s 3rd largest bank. – Rappler.com