BPI's First-Half 2022 Net Income Increased By 73%
BPI's first-half results were good, with a net income of P20.4 billion up 73% year-on-year on a rise in revenues and a reduction in provisions.
Photo Insert: BPI President and CEO TG Limcaoco
The net gain on the sale of property and tax adjustments owing to the CREATE Law are included in this total. Net income was P16.7 billion, an increase of 24.0 percent, excluding the effects of the asset sale and tax adjustments.
Net interest income grew by 16.2 percent to P39.3 billion in the first half of the year, driven by 14.4 percent loan growth and a 15-basis point rise in net interest margin. Additionally, non-interest revenue climbed by 28.4% to P18.3 billion, thanks to a rise in fee income of 42.2% over the previous year, which was partially offset by reduced earnings from securities trading, which had a high base in 2016.
The first semester's total operational expenses were P25.8 billion, up 7.3% from the previous year, with technological investments serving as the primary accelerant. The company's cost-to-income ratio was 44.8%. The cost-to-income ratio was 49.1 percent when asset sales were excluded.
In the first half of the year, the bank recorded provisions of P5.0 billion, a decrease of 23.1% from the P6.5 billion recorded in the same time last year. There was an improvement in the NPL ratio to 1.99 percent and the NPL coverage ratio to 170.7 percent. Credit costs fell to 66 basis points from pre-pandemic levels as asset quality measures remained robust.
There was a 13.98 percent Return on Equity and a 1.71% Return on Assets.
The Bank's net income for the second quarter rose by 82.9% year-on-year to P12.5 billion, its highest ever quarterly figure. On a 35.6 percent increase in revenues, net interest income and non-interest income accounted for P32.3 billion in the quarter.
Even after deducting the impact of the asset sale, the second quarter of 2022 still had record revenues of P27.3 billion and record profits of P8.7 billion.
There was a 14.4% year-on-year increase in total loans as of June 30th, 2022, due to increasing loan volumes across the board, driven by growth of 16.3%, 16.5 percent, and 5.9 percent in the corporate and SME credit card and vehicle portfolios.
Deposits climbed 18.3% year-on-year to P2.0 trillion in the first three months of the year. 12.6 percent growth in the bank's CASA.
While the Loan-to-Deposit Ratio was 78.1 percent, the CASA ratio was 79.2 percent. Volumes of loans and deposits are nevertheless higher than they were before the outbreak.
With a total value of P2.5 trillion, assets are up 13.1% from the same time last year. An estimated Common Equity Tier 1 Ratio (CET1) of 16.0 percent and a Capital Adequacy Ratio of 16.9 percent were both above regulatory limits for P304.1 billion in total equity.