BPI 2012 Net Income at P16.3 Billion

The Bank of the Philippine Islands (BPI) posted strong business volume and revenue growth in 2012 as the Philippines likewise grew at a faster pace compared to other Asean economies. BPI’s unaudited net income for full year 2012 reached P16.3 billion, a 27% increase over the P12.8 billion posted in 2011. This translated to a Return on Equity of 17.5% and a Return on Assets of 1.9%.

Total resources reached P985 billion or 17% higher than the previous year as the Bank’s core businesses remained solid. Deposits expanded by a healthy 18% to P802 billion while assets under management was P743 billion or 11% higher, bringing total intermediated funds to P1.5 trillion.

The net loan portfolio increased by 16% to P527 billion as all markets sustained double digit growths: 17% for both the consumer segment and the middle market/SMEs, and 12% for the top tier corporates. Asset quality continued to improve with its 30-day NPL ratio down to 1.46% from last year’s 1.87%.

Net interest income rose by 6% as the average asset base went up by P64 billion. Net interest margin had a slight 10 bps contraction as spreads were challenged following the 100 bps cut in policy rates last year as well as the non remuneration of banks’ reserve requirement deposits with the BSP.

Non-interest income was 25% better mainly due to higher trading gain on securities sold, other operating income, and fees & commissions.

Operating expense growth was managed at 6% coming from technology and occupancy related expenses and regulatory costs. Impairment losses were at P2.9 billion due to additional provisions for non credit related items and foreclosed assets.

BPI’s market capitalization was at P338 billion as of end 2012. The Bank remains adequately capitalized with a Basel II Capital Adequacy Ratio (CAR) of 14.2% and Tier 1 CAR of 12.8%.

BPI President and CEO Aurelio R. Montinola III commented, “2012 was a banner year for BPI, as we generated record profits and exceeded our return on equity goal of 16%. We will aim for 12 to 15% loan growth in 2013. However, given significant securities trading gains last year and an even lower interest rate regime this year, our challenge for 2013 will be to deliver a meaningful earnings growth after a record 2012 performance.”