BPI notches P11-B income

BPI notches P11-B income

AYALA-LED Bank of the Philippine Islands (BPI), the country’s third largest in terms of assets, booked a net income of P11.3 billion last year, exceeding its all-time high of P10 billion in 2007.
Its net profit last year was also 33% higher than its P8.5-billion net profit in 2009.

“Despite anxiety over the global banking environment [in] 2009, 2010 proved to be a good year for the banking industry and for BPI in particular,” BPI President and Chief Executive Officer Aurelio R. Montinola III was quoted as saying in a statement.

BPI shares, however, closed at P51.40 apiece yesterday, 10 centavos cheaper than on Monday, as the local bourse continued to slump.

BPI said its net income was propelled by a 13% rise in total revenues, but did not disclose the amount.

It said net interest earnings increased by 10% while non-interest income, which included securities trading and foreign exchange gains and fees and commissions, jumped by 18%.

Loans rose by 16% to P387 billion, fueled by a double-digit growth in all market segments.

Assets expanded by 21% to P877 billion last year from the previous year after deposits rose by 24% growth to P720 billion.

BPI said its P11.3-billion net income translated into a 15.6% return on equity (RoE) -- or net income earned as percent of stockholders’ investment and a key measure of performance. This RoE surpassed the 13% recorded in 2009.

Meanwhile, return on assets or return on investments -- the net income earned from total assets -- improved to 1.5% from 1.3% in 2009.

The bank’s nonperforming loan ratio -- the ratio of the soured loans to total loans -- stood at 2% last year, an improvement from the previous year’s 2.8%, with a reserve cover of 109.2%.

BPI also pointed out its P210-billion capitalization as of end-2010 was the highest among local banks. -- Ann Rozainne R. Gregorio

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