Makati—(PHStocks)—Bank of the Philippine Islands (PSE: BPI) registered a net income of PhP9.3 billion for the first half of 2015, a 16% improvement over PhP8 billion earned in the same period last year, resulting in annualized ROE and ROA of 13% and 1.4%, respectively. Comprehensive income for the same period, which includes mark-to-market adjustments on available-for-sale securities, amounted to PhP9.1 billion, a 34% increase year-on-year.
Total revenues reached PhP29 billion as both net interest income and non-interest income increased. Net interest income was PhP19 billion, up by PhP2 billion, or 12% year-on-year, due to a 15% expansion in average assets. Non-interest income was PhP10 billion, up PhP1 billion, 11.5% better than the same period last year due to higher income from securities trading, fees and commissions, and the insurance business.
Growth in operating expenses was moderate, increasing by only 7.6% year-on-year. The bank thus registered a cost-to-income ratio of 51.9%.
The bank’s total assets stood at PhP1.4 trillion at the end of the period, a 9.7% increase year-on-year. Deposits increased to PhP1.2 trillion, representing a 12% increase year-on-year, and a record level for the bank. Total loans grew by 9% over the same period. Asset quality remains strong, with a gross 90-day non-performing loan ratio of 1.77%, down from last year’s 1.85%. Loan loss cover was maintained at 108%.
Capital was at PhP149.7 billion at the end of the period. BPI’s first semester cash dividend of PhP0.90 per share was recently approved by the Bangko Sentral ng Pilipinas, and this will be payable to shareholders on 2 September 2015.
Consolidated CET 1 Capital Adequacy Ratio (CAR) was 14.3%, while total CAR was 15.2%.
“We remain focused on providing our shareholders with superior risk-adjusted returns through the cycle,” said Cezar P. Consing, BPI’s President and CEO. “At the same time, we continue to build the bank around our clients.This is a journey, and we believe we do well when our clients do well.”