BPI posts 66% jump in annual profit as loan growth gathers steam

Earnings of Ayala-led Bank of the Philippine Islands (BPI) surged by 66 percent in 2022 to a record P39.6 billion.

BPI’s robust profitability was driven by strong loan growth, higher net interest margin and lower provisions, as well as a gain from a property sale in the second quarter.

Without the impact of the one-off gain from the property sale, the bank’s net income amounted to only P35.9 billion, 50.2 percent higher than the previous year.

Revenues grew 21.7 percent to P118.5 billion on the back of a 22.2 percent jump in net interest income to P85.1 billion, which was achieved due to the expansion of the bank’s asset base.

For the fourth quarter alone, BPI’s net income stood at P9.1 billion, 41.4 higher year-on-year, but 10.3 percent lower quarter-on-quarter.

BPI’s non-interest income, on the other hand, rose by 20.3 percent to P33.5 billion, primarily from the one-off gain on the property sale, higher fees from the credit cards business and transaction banking services, as well as gains from foreign exchange transactions.

Total loans recorded by the bank reached P1.7 trillion, up 15.3 percent driven by growth in the credit card, corporate/SME and auto portfolios.

Total deposits also increased by 7.2 percent to P2.1 trillion, while current and savings accounts (CASA) went up by 3.5 percent.