BPI nets P38.6B in Jan.-Sept. 2023, up 26.4%

Ayala-led Bank of the Philippine Islands (BPI) saw its bottom line hit a record high during the first nine months of 2023.

In a disclosure to the Philippine Stock Exchange on Thursday, BPI reported a net income of P38.6 billion, a historical high for its nine-month earnings.

The recorded earnings during the January to September period was 26.4% higher year-on-year and equivalent to a return on equity of 15.6%, the bank said.

BPI attributed the record nine-month bottom line to sustained loan and margin growth, as well as tempered provisions, which were the main drivers of the strong financial performance.

This, as total revenues grew by 15.3% to P100.9 billion on the back of a 24.5% increase in net interest income to P76.8 billion.

However, the bank said its top line growth was partly offset by the 6.6% decline in non-interest income to P24.1 billion due to the property sale gain recognized in the prior year.

Excluding the impact of the one-off transaction last year, non-interest income would be higher by P3.3 billion or 15.7% on the back higher fees from credit cards, bancassurance, various service charges, and trading gains.

Meanwhile, operating expenses for the nine-month period increased 21.3% to P48.6 billion due to larger spending for manpower, technology, and marketing, resulting in a cost-to-income ratio of 48.2%, according to BPI.

BPI’s total loans stood at P1.7 trillion, 8.8% higher year-on-year, driven by the loan growth in the corporate, credit card, and auto portfolios of 5.3%, 37.7%, and 22.3%, respectively.

Total deposits, on the other hand, amounted to P2.2 trillion, up 6.7% year- on-year, bringing BPI’s loan-to-deposit ratio to 80.2%. —KBK, GMA Integrated News