By James A. Loyola

Bank of the Philippine Islands (BPI) reported that its net income for the first nine months of the year was flat at P17.01 billion although third quarter earnings rose 12 percent to P5.98 billion from P5.36 billion in 2017.

Total revenues increased by 7.3 percent to P56.89 billion, on the back of 15.1 percent growth in net interest income, which reached P40.88 billion.

The increase in net interest income was a result of a 9.4 percent increase in average asset base, and a 17-basis point expansion in net interest margin (NIM).

Interest income from loans grew by 24.2 percent year-on-year as the yield on interest-earning assets improved by 37 basis points.

This was partially offset by a 24-basis point increase in cost of funds due to higher time deposit rates and higher documentary stamp taxes (DST) on deposits.

Total loans stood at P1.27 trillion, reflecting a 12.9 percent growth year-on-year, boosted by the strong growth in corporate loans and credit card loans at 13.7 percent and 22.0 percent, respectively.

Total deposits reached P1.54 trillion, up by 2.5 percent, with current and savings accounts (CASA) registering faster growth at 6.4 percent. The Bank’s CASA ratio stood at 74.0 percent while the loan-to-deposit ratio (LDR) was at 82.2 percent.

Year-to-date, the Bank registered higher fee-based income from its credit card, deposit and rental businesses.

However, lower securities trading gains, trust and investment management fees, insurance income and asset sales contributed to an 8.7 percent decline in non-interest income, to P16.01 billion from the P17.54 billion posted over the same period in 2017.

Provision for loan losses over this period total P2.84 billion, 21.2 percent lower year-on-year, indicative of the asset quality of the bank.