‘Robust’ revenues lifted BPI to record net income in H1

Earnings per share is PHP5.8 for the period, a 14% increase.

Bank of the Philippine Islands (BPI) has posted a record net income of PHP39.6b ($677.21m) for the first six months of 2024, 21.5% higher compared to H1 2023.

In an SGX filing, Southeast Asia’s oldest bank attributed this to robust revenues and sustained positive operating leverage.

For the second quarter, net income is PHP15.3b ($261.65m), 17.5% higher compared to Q2 2023. Total loans were 18% higher and deposits were 14.4% higher.

Earnings per share is PHP5.8 ($99.19m) for H1, 14% higher than in H1 2023.

Total revenues expanded 23.8% to PHP81.2b ($1.39b) in H1 compared to a year ago. This was boosted by a 22.2% growth in net interest income to PHP61.3b ($1.05b).

Average loans expanded 18.4% whilst net interest margin widened 23 basis points (bp) to 4.26%.

Non-interest income is PHP19.9b ($340.28m), 28.7% higher than a year earlier. This was driven by fee income rising 28.8% to PHP17b ($290.69m), and foreign exchange gains of PHP2.2b ($37.62m).

“Strong fee income performance was led by higher service charges, bancassurance income, and credit card fees,” BPI said in a reported filed at the Singapore Exchange.

Operating expenses rose 21.9% to PHP38.3b ($654.91m). BPI said that it spent more on manpower, transaction processing costs, and technology. Cost-to-income ratio is 47.1%.

BPI also booked higher provisions at PHP3b– 50% higher than in H1 2023. Non-performing loans (NPL) ratio rose to 2.2%. NPL ratio is 127.6%.

(US$1 = PHP58.48; as of 31 July 2024, 11:45AM)