Bank of the Philippine Islands, the country’s fourth-largest lender in terms of assets, said Thursday net income in 2016 jumped 20.9 percent year-on-year to P22.05 billion, on the strength of its core businesses.
“Growth in BPI’s business was buoyed by the bank’s strong relationships with corporate clients who drove loan growth across a variety of landmark transactions,” BPI president and chief executive Cezar Consing said in a statement Thursday.
“We took advantage of 2016’s market conditions to exploit unique opportunities, while gearing for growth in 2017 and beyond. We led some critical financing transactions for corporate clients, spurring our country’s development in energy and infrastructure. In retail, we have positioned our teams for both stronger volumes and more focused risk management,” Consing said.
The bank arranged a P12.5-billion climate bond for AboitizPower’s Tiwi-Makban geothermal plant in 2016. It also arranged a P15-billion retail bond issuance for Ayala Land and a P19.2-billion initial public offering of Pilipinas Shell, both highly successful issues.
Total revenues grew 12.1 percent to P66.55 billion, while net interest income rose 9.7 percent to P42.38 billion. Non-interest income climbed 16.7 percent to P24.17 billion, on strong gains related to the bank’s securities portfolio and higher fees from core transactional and bancassurance businesses.
Operating expenses last year increased 9.6 percent to P34.94 billion from a year ago, driven mainly by spending on general infrastructure, as well as collective bargaining costs. Provisions ended at P4.80 billion, up 20.7 percent.
Cost-to-income ratio was 52.5 percent, lower than 53.7 percent in 2015. Return on assets and return on equities were 1.4 percent and 13.8 percent, up 0.09 and 1.44 percentage points, respectively.
Total loans rose 19.2 percent to P1.04 trillion, with a 79 percent and 21 percent corporate-retail mix. Gross 90-day non-performing loans fell to 1.5 percent, from 1.6 percent. Reserve cover rose to 118.7 percent from 110.2 percent.
Total deposits increased 12.2 percent to P1.43 trillion year-on-year. Total assets ended 2016 at P1.73 trillion, up 13.8 percent, or P209.34 billion above 2015 level.
Total capital reached P165.13 billion, up 9.9 percent. Capital adequacy ratio and CET1 ended at 13.0 percent and 12.1 percent, respectively.