BPI net income up 15% to P18.8 billion in 2013

Ayala-led Bank of the Philippine Islands (BPI) grew its 2013 net income by 15 percent on the back of better deposit levels and lending transactions.

 

In a disclosure to the Philippine Stock Exchange, BPI said it booked a net income of P18.8 billion from P16.3 billion, translating to an 18 percent return on equity and 1.9 percent return on assets.

 

"We are pleased with our results for 2013, and are going into 2014 with very strong momentum," president and CEO Cezar P. Consing said.

 

Deposits rose 23 percent to P989 billion driven by a 40 percent growth in savings and demand.

 

Net loan portfolio increased by 21 percent to P635 billion, boosted by double-digit growth in corporate and consumer lending.

 

Non-performing loans (NPL) ratio improved to 1.8 percent from 2.09 percent while reserve-to-NPL ratio ended the year at 105 percent.

 

Net interest income grew by 10 percent as the bank’s average asset base expanded by 18 percent while non-interest income jumped 11 percent on higher fees and commissions and other operating income. 

 

Total securities portfolio declined 8 percent to P188 billion from P205 billion, with combined available-for-sale and held-for trading positions declining 28 percent to P92 billion from P128 billion, reflecting the bank's risk posture in the context of the changing interest rate environment.

 

Operating expenses stood at 7 percent, with increases largely attributable to regulatory costs, technology, and occupancy-related costs.

 

Total resources as of year-end 2013 stood at P1.2 trillion, or 21 percent higher than in 2012 as a result of solid performance in the bank’s diversified businesses.

 

On Tuesday, BPI said it ended the offering period for its stock rights offer on Jan. 30, 2014 and raised P25 billion from the issuance, raising its Tier 1 capital adequacy ratio to 18.6 percent from 14.7 percent. – Danessa Rivera/VS, GMA News