BPI Nets P17.5B

The Bank of the Philippine Islands posted a net income of P17.5 billion for the period January to September 2021, up 1.8%, from the same period last year, driven by lower provisions.

Photo Insert: One service that sets BPI apart from other local banks is the Cash Acceptance Machine (CAM).

Total Revenues for the nine-month period declined by 6.0% to P71.6 billion. Net Interest Income was lower by 5.6% to P51.2 billion, as NIM contracted by 21 bps from 3.51% to 3.31% brought about by a decline in yields across loan portfolios and treasury assets.

While Non-Interest Income was down by 7.0% to P20.5 billion on lower trading income, this was cushioned by a 27.2% increase in fee income, reflecting the strong recovery across all business lines.

Total Operating Expenses as of September 30, 2021, reached P36.5 billion, up 3.5% driven by higher technology costs as the bank continues to invest in digitalization. The cost-to-Income Ratio stood at 50.95%.

The bank booked Provisions of P10.3 billion, lower by 49.9% than the P20.5 billion booked over the same period last year. NPL ratio declined from 2.98% to 2.73%, with NPL Coverage ratio increasing from 100.45% to 130.72%.

Total Loans as of September 30, 2021, was P1.4 trillion, a 0.9% increase year-on-year, due to higher mortgage, credit card, and microfinance loans. Total Deposits were up 6.6% at P1.8 trillion.

Notably, CASA grew 12.1%, offsetting the 11.0% decrease in time deposits. The Bank’s CASA ratio was 80.1%, while the Loan-to-Deposit Ratio was 77.2%. Total Assets stood at P2.3 trillion, up 3.3% year-on-year.

Total Equity increased to P291.8 billion, with an indicative Common Equity Tier 1 ratio of 16.81% and a Capital Adequacy Ratio of 17.69%, both well above regulatory requirements. Return on Equity was 8.3%, while Return on Assets was 1.1%.

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