AYALA-led Bank of the Philippine Islands (BPI) announced last Thursday its net income reached P30.5 billion in the January-to-September period on the back of strong revenues.
In a disclosure to the local bourse, BPI said its net income would have been lower if not for a one-time gain in the second quarter and tax adjustments.
These adjustments were made through the Corporate Recovery and Tax Incentives for Enterprises (Create) law (Republic Act 11534). Signed into law last year, RA 11534 lowered the corporate tax rate with the aim of expanding the tax base.
“Excluding the impact of the one-off gain from sale of property in the second quarter and adjustments due to the Create Law, net income would have been P26.8 billion,” BPI said in a disclosure to the Philippine Stock Exchange (PSE).
The Ayala-led bank also said its return on equity stood at 13.73 percent while its return on assets stood at 1.66 percent.
In the third quarter, BPI booked a net income of P10.1 billion on the back of stronger revenues in the third quarter of the year.
BPI reported that its revenues grew 26.8 percent to P29.8 billion driven by a double-digit growth in interest and non-interest income during the period. The bank also reported a customer base of over 9 million.
Loans, deposits
THE country’s third-largest bank by asset said that as of September 30, its total loans stood at P1.6 trillion, up 15.4 percent year-on-year, led by growth in the credit card, corporate/SME and auto portfolios of 29.1 percent, 16.4 percent, and 12.1 percent, respectively.
Total deposits expanded to P2 trillion, up 13.2 percent year-on-year, while CASA increased 7.5 percent. CASA Ratio stood at 76.1 percent and Loan-to-Deposit Ratio at 78.7 percent as of end September 2022.
Total assets reached P2.5 trillion, reflecting an 11.8 percent growth year-on-year. Total equity stood at P313.4 billion, with an indicative Common Equity Tier 1 Ratio of 15.9 percent and a Capital Adequacy Ratio of 16.8 percent, both above regulatory requirements.
Last month, BPI announced merger plans with Robinsons Bank Corp. with BPI emerging as the surviving entity, subject to shareholders and regulatory approvals.
The merger, which the parties hope to complete before the end of 2023, will unlock various synergies across several products and service platforms and expand the customer and deposit base of both banks through the merged entity.