PUBLICLY-listed Bank of Commerce (BankCom) posted its highest net income since being acquired by San Miguel Corp. (SMC).
In a statement to the Philippine Stock Exchange (PSE), BankCom said its net income surged 49 percent to P1.8 billion in 2022 from P1.2 billion in 2021.
The bank said the increase in its net income was driven by the P3.37 billion of common stock capital through its initial public offering and maiden issue of P7.5B bonds.
The bank also said its stellar performance was also boosted by the Bangko Sentral ng Pilipinas’s conferment of universal bank status in November. Apart from net income, BankCom said its gross revenue increased by 30 percent to P8.12 billion from the P6.22 billion in 2021.
“[This is] due to the growth in net interest income, service charges, fees, and commissions, foreign exchange and gains on foreclosure and sale of property and equipment and foreclosed assets,” BankCom said.
Net Interest Income for 2022 surged to P6.68 billion, up 24 percent from last year’s P5.40 billion. This was mainly boosted by the increase in interest on loans and receivables and investment securities.
Other income also supported the bank’s profit as it reached P1.43 billion, 74 percent more than the previous year’s P826.34 million.
This is primarily due to the 61 percent surge in service charges, fees and commissions to P857.63 million.
The significant increase was mainly brought about by a new revenue stream, investment banking, as well as foreign exchange gains of P150.32 million which more than tripled.
BankCom also said it posted gains due to the foreclosure and sale of property and equipment and foreclosed assets amounting to P340.45 million and strong growth in trade and digital transactions.
The bank has a network of 140 branches and aims to deploy more automated teller machines (ATMs) in addition to the 259 count at end December 2022.
It traces its origins to the Overseas Bank of Manila, established in Binondo, Manila in 1963. In December 2020, the Intellectual Property Office granted the copyright license for BankCom as the bank’s official short name.