Tuesday, 2 February 2010

BPI net income up by 33%

Louella D. Desiderio

AYALA-LED Bank of the Philippine Islands (BPI) yesterday reported a 33% increase in its consolidated net income in 2009 due to higher net interest and non-interest earnings.

In a disclosure to the Philippine Stock Exchange, the bank, the country’s third largest in terms of assets, said its unaudited net income for 2009 reached P8.5 billion, up from P6.4 billion in the previous year.

“After all the doom and gloom at the beginning of the year, we are grateful that BPI had solid growth and earnings in almost all sectors in 2009,” BPI President and Chief Executive Operating Officer Aurelio R. Montinola III was quoted as saying in the disclosure.

BPI shares shed a peso to close at P44.50 apiece yesterday.

BPI said its total revenues rose by 15% due to the 10% growth in its net interest income and 25% increase in non-interest income. BPI did not provide the amounts.

Net interest income grew due to a 9% increase in the bank’s average asset base and improvement in net spreads.

Net loans, however grew by only 2%, as multinationals tapped other funding sources.

The bank, however, notched increases in credit card loans, SME loans, consumer loans and middle market company loans.

The bank’s non-interest income, meanwhile, BPI said, was up due to earnings from securities trading.

The bank recorded a securities trading gain of P1.5 billion, a turnaround from losses in the previous year.

BPI said there were also gains from asset sales, rental, income and insurance operations and saw increases in various fees and commissions. It did not provide figures, however.

BPI’s unaudited total resources reached P725 billion, 9% higher than in 2008.

Total funds managed by the bank was up by 22% to P1 trillion.

Deposits grew by 7% to P579 billion, while assets under management increased by 50% to P439 billion.

Remittances posted a 15% growth as the bank accounted for more than 20% of the overseas Filipino remittance business.

“While there continue to be differing views on the strength of the recovery in 2010, we are confident that BPI will continue to serve its clients in a proactive financial advisory manner and be an innovative financial trailblazer in this new decade,” Mr. Montinola said.

“With the global economic recovery under way, we expect BPI to even perform better in 2010.”

BPI recently launched a mobile microfinance bank and has partnered with the Philippine American Life Insurance Co. for its bancassurance business.

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