Higher net interest income contributed to strong quarterly earnings.
Bank of the Philippine Islands (BPI) revenues rose 6.7% YoY to $1.33b (PHP 71.02b) in Q4 thanks to sustained net interest income which hit $898.83m (PHP48.04b), according to a statement.
Also read: Higher interest expenses curbed BPI's growth
Fee-based income which climbed to $372.45m (PHP 19.9b) amidst higher credit card fees and banking commissions was able to offset the absence of one-off trading gains that drove last year’s non-interest income.
Also read: BPI targets growing its SME and retail arm
Total loans also surged 15.5% YoY to $22.46b (PHP1.20t) amidst higher volume of corporate loans.
Similarly, asset quality improved with the gross 90-day non-performing loans (NPL) ratio declining from 1.46% to 1.29%. .
On the other hand, operating expenses rose 10.3% YoY to $721.12m (PHP38.53b) as spending on technology, operations and marketing increased. Cost to income ratio also inched up from 52.5% in 2016 to 54.3% in 2017.
“We come out of 2017 stronger than ever”, said BPI president and CEO Cezar P. Consing. “Whilst the Bank has grown significantly in the past several years, we intend to continue to invest in people, technology and branches to support and benefit from a surging Philippine economy. Inclusive, profitable growth will be our focus.”
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