BPI Reports A 26.4% Increase In Earnings To ₱38.6 Billion

Bank of the Philippine Islands (BPI) has reported a 26.4 percent increase in net income to P38.6 billion in the first nine months of 2023, compared to P30.5 billion in the same period last year.

BPI described the 26.4% increase in net income as a "historical high" for its nine-month performance. I Photo: BPI Facebook

This significant growth is attributed to sustained loan and margin expansion.

In a disclosure to the Philippine Stock Exchange (PSE), BPI mentioned that its total revenues increased by 15.3% to P100.9 billion.

This surge was mainly driven by a 24.5% rise in net interest income to P76.8 billion.

Additionally, the bank expanded its average asset base by 8.1% and improved its net interest margin to 4.07%.

BPI described the 26.4% increase in net income as a "historical high" for its nine-month performance. It also noted that its non-interest income could have been even higher, growing by P3.3 billion or 15.7%, if not for a 6.6% decrease in non-interest income to P24.1 billion due to a property sale gain recorded in the previous year.

During the first nine months of 2023, the bank's operating expenses increased by 21.3% to P48.6 billion, compared to P40.1 billion in the same period in 2022.

This rise is attributed to increased spending on manpower, technology, and marketing, resulting in a cost-to-income ratio of 48.2%. BPI also reported provisions of P3.0 billion, a 60% decrease from the P7.5 billion recorded in the first nine months of 2022.

In terms of asset quality, BPI recorded a slightly weaker performance with a Non-Performing Loan (NPL) ratio of 1.97% and an NPL coverage ratio of 158.95%, compared to the same period in the previous year. The bank also achieved its "highest quarterly net income in the past decade," with a net income of P13.5 billion in the third quarter of 2023.

This represents a 33.3% increase from the P10.1 billion recorded in the third quarter of 2022.

Revenues for the quarter also saw substantial growth, reaching P35.3 billion, marking an 18.3% increase from P29.8 billion in 2022. This growth was primarily driven by higher net interest income and non-interest income.

BPI further noted that international credit rating agencies, including S&P, Moody's, and Fitch, have affirmed the bank's credit ratings with a "stable outlook" as of September this year. The bank's investment-grade ratings include BBB+ from S&P, Baa2 from Moody's, and BBB- from Fitch.

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