BPI Q1 net income down 5% on higher loan loss provisions

Ayala-led Bank of the Philippine Islands (BPI) saw its bottom line decline by 5% in the first quarter of the year, dragged by higher provisions for potential loan losses due to the coronavirus disease 2019 (COVID-19) crisis.

In a disclosure to the Philippine Stock Exchange on Thursday, BPI said it booked P4.23 billion in provisions for loan losses in the first quarter of 2020 as “the COVID-19 pandemic ushers in a difficult period for consumers and businesses that could lead to potentially higher NPLs (non-performing loans).”

The provision for expected credit losses is 2.4 times more than the P1.80 billion set aside during the same period last year.

“This resulted in a net income of P6.39 billion for first quarter 2020, a decline of 5.0% from P6.72 billion registered in the same period last year,” BPI said.

Total revenues increased 10.9% to P25.26 billion.

Net interest income jumped 13.0% to P18.14 billion.

Non-interest income stood at P7.12 billion, up 5.8% on the back of higher securities trading gains.

Operating expenses for the first quarter of 2020 reached P12.53 billion, up 3.8% year-on-year, with a cost-to-income ratio at 49.6%, lower than the 53.0% posted last year.

Total loans as of March 31, 2020 reached at P1.45 trillion, up 7.3% year-on-year, with growth recorded in microfinance, SME, consumer, and corporate loan segments at 66.6%, 14.2%, 9.5%, and 6.7%, respectively. 

Total deposits amounted to P1.68 trillion, up 4.3% year-on-year.

Total assets stood at P2.19 trillion, up 5.1% year-on-year. -MDM, GMA News