BPI Sees Bottom Line Growth In Q2

The Bank of the Philippine Islands (BPI) saw its bottom line grow in the second quarter as the domestic economy stayed open.

Photo Insert: BPI's revenues grew 4.9% on-year to P33.9 billion in the April-June period.

In a recent disclosure sent to the Philippine Stock Exchange (PSE), the Ayala-led bank saw its net income inch up 4.5% year-on-year to P13.0 billion in the second quarter “even without the benefit of a one-time gain.”

That said, their bottom line soared 23% to P25.1 billion in the first half of 2023.

Revenues grew 4.9% on-year to P33.9 billion in the April-June period. BPI attributed the slower pace of expansion to a decline in non-interest income which offset net interest income gain.

BPI’s non-interest income took a hit in the first half, as it declined by 15.4% amounting to P15.5 billion due to a property sale gain in 2022.

The Ayala-led bank noted that non-interest income would hit P2.2 billion if the one-off transaction was omitted. This income segment rose on the back of credit card fees, service charges, and securities trading.

Total deposits rose 7.6% on-year to P2.1 trillion in the first six months.

Operating expenses ballooned by 21.4% to P31.4 billion in the first six months, due in part to expenditures for one-time salary increases, investments in digitalization, and marketing campaigns.

The bank’s non-performing loan ratio stood at 1.88%, with a coverage ratio of 167.44% as of end-June. BPI recognized P2.0 billion in provisions in the first half, markedly lower by 60% compared to a year ago.

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