Saturday, 2 May 2009

Philippine bank records 86% profit jump

By Eileen A. Mencias
Manila Standard
http://www.manilastandardtoday.com/?page=news3_may1_2009

LISTED Bank of the Philippine Islands yesterday said its net income rose 86.1 percent to P2.9 billion in the first quarter on the back of higher net interest earnings and trading income as a result of falling interest rates.

“We are extremely pleased with the bank’s strong first quarter results,” bank president and chief executive Aurelio Montinola III said in a disclosure to the Stock Exchange.

“Not only did it affirm the resilience of the local economy, it likewise validated the strength of our banking franchise and the value of our efforts to diversify our revenue base and improve our credit risk profile.”

But Montinola said the bank remained cautious because the economy and the banking sector were still vulnerable to any further global economic slowdown.

“Signs of stabilization overseas appear tentative and cannot be construed as the beginning of an enduring recovery,” he said.

“We continue to be vigilant as we brace ourselves for any adverse turn in Philippine economic circumstances in the months ahead.”

The Ayala-owned Bank of the Philippine Islands is the Philippines’ oldest bank. Its P110.3-billion capital is also the largest of any bank.

The bank reported a capital-to-risk ratio of 14.9 percent at the end of March—well above the 10 percent required by regulators.

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