The Philippines’ oldest and third largest bank by assets reported a 52% jump in net income during the first half.
Bank of the Philippine Islands saw income surge to US$225 million from US$148million. The income spike was driven mostly by a 24% rise in revenues and increases in interest incomes.
“Net interest income rose by nine percent while non-interest income surged by 51%,” said Senior Executive Vice President Gil Buenaventura.
He said the rise in net interest income was caused by the combined impact of a US$766 million increase in its average asset base and a 14 basis-point improvement in net spreads. On the other hand, non-interest income rose on the extraordinary level of trading gains realized in the first quarter as BPI sold some of its securities holdings.
Buenaventura also reported loan growth rising 17% to US$11.5 billion during the period. Middle market clients (those with assets over US$1.2 million up to US$2.4 million) and borrowers from small and medium scale enterprises accounted for 19% of total loan growth while its top corporate borrowers contributed 15%.
Deposits amounted to US$17.6 billion while consumer lending increased by 17%. The bank’s non-performing loan ratio came to 1.4% compared to the banking industry average of 2.18%.
Assets under management stood at US$17.5 billion, a growth of 15% year-on-year.
Do you know more about this story? Contact us anonymously through this link.