BANK of the Philippine Islands (BPI) has posted net income of P7.3 billion for the first nine months, 11 percent above the full-year 2008 bottom line of P6.6 billion.

Net income for the third quarter reached P2.1 billion, 35 percent higher than the profit it made in the same period last year. It was, however, the smallest quarterly earnings so far this year—with previously reported, but unaudited, net income higher at P2.4 billion in the second quarter and P2.9 billion in the first.

“This operating result [third quarter] included an additional impairment loss of P100 million for typhoon-related accounts and higher manpower costs from the increased retirement fund expense, as well as collective bargaining agreement-related payments at the BPI parent company,” the Ayala-controlled bank said on Friday in a statement.

Driving growth in the third quarter was mainly the 19-percent increase in noninterest income.

“Noninterest income was ahead of last year despite the lower profits from asset sales,” said the bank, which is partly owned by DBS of Singapore, Southeast Asia’s biggest financial group, through Ayala DBS Holdings Inc.

The improved noninterest income reflected a major turnaround in income from foreign-exchange and securities trading which recorded some trading losses last year, said BPI, which is also partly owned by the Roman Catholic Archbishop of Manila. Net-interest income in the third quarter grew 6 percent.

Total revenue in the first nine months grew 16 percent as both the net-interest income and noninterest income grew by 14 percent and 20 percent, respectively. “The growth in net-interest income was brought about by an 8-percent expansion in average asset base, as well as a 13-basis-points widening in net spreads,” BPI said.

Noninterest income was higher as the prevailing low- interest rates provided the bank the opportunity to sell down part of its securities inventory and generate bigger trading gains.

Operating costs in the first nine months were 6 percent above the previous year due to manpower and premises-related expenses.

Impairment losses reached P2.1 billion, or P547 million higher, with additional provisions set up for corporate accounts, as well as possible credit losses that may arise from the recent typhoons, it said.

The bank’s end-September total resources went up by 9 percent to P665 billion on a year-on-year basis. The figure, however, is smaller compared with the end-June level of P696 billion.

Deposits at P515 billion registered a 4-percent increase from a year ago, but were down from P567.2 billion as of end-June.

Assets held in trust posted a 46-percent increase to P439 billion from a year ago. Trust accounts stood at P367.2 billion as of end-June.