Bank of the Philippine Islands, the country’s fourth-largest lender in terms of assets, said net income in the first half of 2016 jumped 36 percent to P12.67 billion year-on-year.
The bank said in a disclosure to the stock exchange Friday total revenues rose 21 percent to P35.20 billion, while net interest income increased 10 percent to P20.70 billion.
Non-interest income climbed 42 percent to P14.50 billion, driven by securities trading, bank fees and commissions, bancassurance and capital markets.
Operating expenses rose 14.4 percent to P17.31 billion, triggered by up-front collective bargaining related costs and accelerated spending in technology.
The bank, however, said it “anticipates continued discipline—and slower growth rates—in overhead spending and provisioning for the remainder of the year.”
The bank’s first-half cost-to-income ratio stood at 49 percent, lower than 51.9 percent in the same period last year. Return on assets and return on equity were 1.6 percent and 16.4 percent, respectively.
Total loans stood at P904.38 billion, up 19 percent, driven largely by gains in corporate loans, which grew by 20.4 percent.
The bank’s gross 90-day non-performing loans dropped to 1.6 percent from 1.8 percent. Reserve cover rose to 117.8 percent.
Total deposits climbed 11 percent year-on-year to P1.33 trillion while current and savings account ratio was 73.5 percent.
BPI in June sold a portion of held-to-maturity securities to fund loan growth, reduce relatively expensive deposits and enhance capital. HTM balances were not reclassified and stood at P216.66 billion, down 8.17 percent.
Total assets ended at P1.58 trillion, up 11 percent or P159.07 billion above that of the same period last year. Total capital was P160.79 billion, up 7.4 percent. Capital adequacy ratio and CET1 ended at 13.9 percent and 13 percent, respectively.