Ayalas’ banking arm enjoys robust growth: BPI profit jumps 74% in 9 months

Higher revenues and lower provisions propelled Ayala-led Bank of the Philippine Islands’ (BPI) earnings by 74 percent in the first nine months of the year.

BPI reported a net income of P30.5 billion from January to September, up 74 percent year on year.

Excluding the impact of the one-off gain from sale of property in the second quarter and adjustments due to the CREATE Law, BPI said net income would have been P26.8 billion.

The bank generated net income of P10.1 billion for the third quarter alone, driven by higher revenue growth.

Total revenues for the three quarters jumped 22.1 percent to P87.5 billion, boosted by the 20.5 percent growth in net interest income to P61.6 billion.

The increase in net interest income was attributed to the continued loan growth and sustained expansion in average net interest margin for the year by 23 basis points to 3.53 percent.

Non-interest income also climbed 26.2 percent to P25.8 billion as a result of one-off gain in asset sale, gains in foreign exchange transactions, and fees from the credit cards business.

BPI’s total assets as of the end of September stood at P1.6 trillion, 15.4 percent higher year-on-year due to 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 by 13.2 percent to P2 trillion, while current account savings account (CASA) increased by 7.5 percent.

BPI and Robinsons Bank Corp. are hoping to complete their merger before the end of 2023, with BPI as the surviving entity.