• April 19, 2017
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BPI releases Q1 2017 net income results

Bank of the Philippine Islands (BPI) posted strong results in Q1 2017. Net Income rose 25.6% relative to the same period last year, to P6.25 billion; Comprehensive Income rose 17.6% to P6.65 billion.

Revenues. Total Revenues reached P17.96 billion, up 17.6%. Net Interest Income rose to P11.49 billion, higher by 15.0% as asset yields rose along with loan volumes. Non-Interest Income also registered strong growth, rising 22.6% to P6.46 billion on higher trading gains, service charges, underwriting fees, and income from asset sales.

Operating Expenses. Operating expenses rose 11.2% to P8.73 billion in the first quarter, driven mainly by additional manpower, regulatory costs, and spending on operational infrastructure. The Bank continues to invest in processes and information systems that enhance customer experience and security. With asset quality strong, provisions were at P1.2 billion, an increase of only 2.4%.

Profitability. Cost-to-income ratio improved to 48.6%, versus 51.4% recorded in Q1 2016. ROA and ROE were 1.5% and 15.0%, up 0.14 and 1.89 percentage points, respectively.

Total Loans and Deposits. Total Loans stood at P1.03 trillion, rising 19.9% year-on-year. Gross 90-day NPLs fell to 1.5% from 1.7%, while reserve cover rose to 123.7% from 114.2%. Total Deposits ended at P1.44 trillion, up 10.7% year-on-year, with low-cost float deposits at 73.9% of total.

Investment Securities. Total Securities ended Q1 2017 at P303.02 billion, largely flat (+0.4%) versus year-ago balances. Held-to-Maturity securities, at P263.79 billion, continue to account for a significant share of the Bank’s investment portfolio, reflecting the Bank’s continued conservative stance given the prospects of higher interest rates in the future.

Total Assets. Total Assets expanded to P1.73 trillion, up 12.4%, or P191.76 billion above Q1 2016 levels.

Total Capital. Capital was P171.85 billion, up 10.2%.

BPI Invests in Improved Customer Experience

BPI is increasing its invesment in tools and processes that will enhance client experience, and safeguard customer transactions. Initiatives include:

• Providing relationship managers with mobility tools for enhanced engagement with clients;
• Reinforcing electronic channels against risks;
• Strengthening Bank Anywhere services, enhancing customer access to electronic channels;
• Offering image-based check clearing services, the first bank in the Philippines to do so; and
• Launching a state-of-the-art Security Operations Center, integrating the physical and technological aspects of the Bank’s security network.

BPI President and CEO Cezar P. Consing said:

“While we are pleased with our first quarter financial and operating results, we are very excited about our programs to continually enhance customer service across multiple channels, by increasing safety, innovation, and convenience.”

Re-disseminated by The Asian Banker