BPI says 2010 net income up 33% to P11.3B

Bank of the Philippine Islands, the largest Philippine bank in terms of market capitalization, reported its net income rose 33 percent to P11.3 billion in 2010 from P8.5 billion a year earlier. The bank in a statement Tuesday its 2010 financial results was based on preliminary audit, which also showed its assets expanded 21 percent to P877 billion. Deposits grew 24 percent to P720 billion as the lender introduced new products that pushed revenues to grow 13 percent. Gross loans the bank extended last year totaled P387 billion, up 16 percent in the 2010-2009 comparable period, with its non-performing loans (NPLs) ratio improved to 2 percent from 2.8 percent. NPLs are loans that have turned past due for 30 days. BPI now claims to have the largest market capitalization at P210 billion for 2010. It raised P10 billion last year via a stock rights offer that helped raise its capital adequacy ratio to 15.45 percent — compared with the 10-percent minimum required by central bank regulation. Tier-one capital — largely shareholders equity — was also above minimum at 13.86 percent. BPI recently acquired the local trust business of the Dutch financial services giant ING Bank, and its full integration within the first three months of the year should help strengthen the bank's position in the industry, analysts said, the bank said. “Despite anxiety over the global banking environment at end-2009, 2010 proved to be a good year for the banking industry and for BPI in particular," BPI president Aureleo Montinola III said in a statement. While holding a positive view of both the industry and the country as a whole this year, Montinola vowed to remain “watchful of potentially troublesome global economy contagion effects on the Philippine banking industry." — VS, GMANews.TV