BANK of the Philippine Islands, the country’s third-largest bank, said Tuesday net income in the first quarter rose 1.3 percent to P4.98 billion from P4.92 billion a year ago.
Total revenues reached P15.27 billion, up 4.9 percent on year, as net interest income posted a 6-percent increase to P10 billion. Non-interest income grew 2.8 percent to P5.27 billion with securities and foreign exchange trading combining for a P1.2-billion gain or a 22-percent increase.
Operating expenses ended at P7.85 billion, up 7.3 percent, mainly driven by increases in regulatory and marketing-related costs.
The bank’s cost-to-income ratio was 1.1 percent higher than last year’s 51.4 percent. Return on assets was 1.3 percent, down 0.2 percent from the prior year. Return on equity was 13.1 percent, down 0.8 percent.
Total loans increased 18 percent to reach P861.22 billion on a 78 percent to 22 percent corporate-retail mix. Gross 90-day NPLs slightly decreased to 1.69 percent from 1.70 percent. Reserves cover was 114.2 percent.
Total deposits stood at P1.30 trillion, up 12 percent year-on-year. CASA (current and savings account) ratio at the end of the first quarter was 72.6 percent.
Total assets stood at at P1.54 trillion, 8.6 percent or P122.70 billion above that of the same period last year.
Investment securities stood at P301.84 billion, a 15.6-percent increase year-on-year. The bank’s investment portfolio continued to be heavily-weighted in held-to-maturity securities at P253.79 billion.
Capital increased 7.1 percent to P155.99 billion. Capital adequacy ratio—a measurement of financial strength—ended at 13.9 percent, well above the regulatory limit, while CET1 stood at 13 percent.
BPI is allocating P450 million, at the most, for the establishment of additional branches this year to widen its coverage areas nationwide.
Chief financial officer Joseph Albert Gotuaco said in an earlier interview BPI planned to open 25 to 30 branches in 2016.
Most of these would be in Metro Manila and the Visayas and Mindanao areas, he said, adding the establishment of new branches would cost around P5 million to P15 million, “depending on the location.”
Bank president and chief executive Cezar Consing said BPI would prioritize expanding its coverage in the country to seize the opportunities, especially with the growing economy.
“We want to allocate our resources primarily in the Philippines,” Consing said. He said the bank was not downplaying the idea of going overseas, especially under the Asean banking integration framework.