THE Bank of the Philippine Islands (BPI) reported a double-digit growth in its net income in the second quarter of the year, as the bank posted its highest quarterly income since the onset of the health and economic crises.
The bank said its net income in the second quarter of the year hit P6.8 billion, up 28.8 percent, from the same period last year and up 36.3 percent from the first quarter of 2021. Net income for the first half of 2021 was P11.8 billion, up 1.2 percent year-on-year.
Despite the higher net income, the bank’s total revenues for the first six months of the year declined by 6.7 percent to P48.1 billion.
Broken down, net interest income dropped by 6.6 percent to P33.9 billion while non-interest income was down by 7.1 percent to P14.3 billion largely due to lower trading income. Fees & Commissions showed a growth of 37.2 percent across fee-based businesses.
Its total operating expenses for the first semester at P24.1 billion was also up 3 percent. BPI’s cost-to-income ratio stood at 50.1 percent, a 4.75-percentage point increase from the 45.3 percent recorded in the prior year.
The bank’s higher net income came from its lower provisions, which hit P6.5 billion. This was lower by 55.7 percent than the P14.7 billion booked in the same period last year.
Meanwhile, BPI’s non-performing loan ratio was 2.94 percent, with NPL coverage ratio at 120.3 percent.
In line with the industry trend, BPI’s total loans as of June 30 this year was P1.4 trillion, a 4.5-percent drop year-on-year. The bank blamed this on softer demand in corporate, small and medium enterprises and auto loans.
BPI’s total deposits were also down by 4.5 percent year-on-year at P1.7 trillion.
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