Bank of the Philippine Islands, the third-largest lender in terms of assets, plans to start constructing its new headquarters along Ayala Avenue in Makati City by the second quarter of next year.
BPI executive vice president, treasurer and global markets head Antonio Paner said the bank would be “tearing down” its current head office built four decades ago in the first quarter next year.
“The old building will be torn down in the first quarter next year and subsequently start the construction of a new one in the second quarter,” Paner said.
Paner said BPI might be building two towers on its present site, with one intended for mixed-use purposes. He said 60 percent of the old building’s occupants had already transferred to other locations to give way for the demolition come 2019.
“I think the new buildings would be completed in more or less four years,” Paner said, adding the structures could be as high as the Enterprise on the other side of Paseo de Roxas.
He did not give rough estimates on the construction cost of the two towers, saying the “specs are not yet known.”
The current BPI head office along Ayala Avenue near the corner of Paseo de Roxas in Makati City was built in 1979 and designed to cater to senior officers of the bank.
Net income of the bank in the third quarter 2018 rose 12 percent to P5.98 billion from P5.36 billion a year ago, on the back of a 21-percent expansion in net interest income.
Net income in the first nine months was flat at P17.01 billion on lower trading gains. Comprehensive income was P15.30 billion.
Total revenues increased 7.3 percent to P56.89 billion, on the back of a 15.1-percent growth in net interest income to P40.88 billion.
The increase in net interest income was a result of a 9.4-percent growth in average asset base, and a 17-basis point expansion in net interest margin. Interest income from loans grew 24.2 percent year-on-year as the yield on interest-earning assets improved by 37 basis points.
This was partially offset by a 24-basis point increase in cost of funds due to higher time deposit rates and higher documentary stamp taxes on deposits.