BPI’s Q1 net profit increases by 52%, boosts efforts toward financial inclusion

The January to March performance was driven by the bank’s average asset base expansion, margin growth, and lower provisions.

The Bank of the Philippine Islands (BPI) saw its net income reach P12.1b ($230m) in the January to March period.

This was 52% higher on a year-on-year (YoY) basis compared with the previous year’s performance. Its return on equity (ROE) pencilled at 15.4%.

“The solid performance was attributable to average asset base expansion, margin growth, and lower provisions,” said the bank in a local bourse filing.

Sum of its revenues in the first quarter recorded P31.7b ($570m), a 25.1% growth. This was driven by the net interest income of P24.2b ($440m), straddling a 10% growth in the average asset base and a net interest margin (NIM) of 3.94%.

Non-interest income also climbed 18.6% to P7.6b ($140m), which was pushed by higher credit card billings and charges, securities trading gains, and fees from investment banking project finance deals, according to the bank.

Meanwhile, total operating expenses reached P15.1b ($270m).

The bank’s non-performing loans (NPL) ratio showed better performance at 1.82%, from 2.38% in March last year. Making the bank register an NPL coverage ratio of 176.7%.

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Accumulated assets grew 12.4% to P2.7t ($49b). However, the return on assets stood at 1.9%. Total loans end-March reached P1.7t ($31b), up by 13.6% YoY.

Total deposits also went up 13.6% to P2.1t ($38b).

Total equity registered P331.6b ($6b), which resulted in a Common Equity Tier 1 Ratio of 15.7% and a Capital Adequacy Ratio of 16.6%, both above regulatory requirements.

Annual stockholders’ meet
The bank and its stockholders gathered in an annual meeting held on 27 April and discussed paths toward ramping up financial inclusion.

Referring to last year’s performance, BPI Chairman Jaime Augusto Zobel de Ayala said its 2022 performance will pivot its way toward inclusive finance through digitalisation and sustainable projects.

Moving forward, the bank is focused on materialising its merger with another Philippine bank, Robinsons Bank Corporation (RBC), having BPI as the surviving entity.

“We have already secured Board and Shareholder approvals for the merger which will expand our reach, grow our portfolio, and unlock various synergies across the ecosystem of both banks. We are very excited to see the outcome of this merger and look forward to all the great things ahead.” Zobel de Ayala said.

(P1 = $0.018)