BPI nets P4.6B in 3rd quarter

The Bank of the Philippine Islands (BPI) posted an income of P4.6 billion as of the third quarter and at the same time maintained a 12.64-percent non-performing loans (NPL) ratio, considered to be the lowest in the industry. Established in 1851, BPI is marking its 150th founding anniversary this year.

The Ayala-owned bank said its P4.6-billion net income for the first nine months is 72 percent higher than the P2.7 billion in the same period last year. Based on its third quarter consolidated statement, BPI garnered a return on average equity of 12.2 percent, or 5.2 percent better than last year’s seven percent. The bank is set to issue another cash dividend to its stockholders. BPI already issued two cash dividends earlier this year.

Loan-loss provision was maintained at last year’s running rate of P1.6 billion. Accumulated loan-loss reserves amounted to P14.5 billion representing a 7.9 percent of total portfolio. Its reserve cover on 90 days non-performing loans stood at 62 percent. BPI’s consolidated statement also said that their total 30 days NPL was P23.9 billion or 12.64 percent, which appears to be lowest among the major banks.

Securities and trade analysts agree that BPI continues to outperform the industry in terms of performance and loan portfolio quality. Under the stewardship of BPI president and chief executive officer Xavier Loinaz, the bank’s exceptional performance has become more apparent since the 1997 Asian crisis that adversely affected banks across the region.

Earlier this year, BPI through its consumer lending subsidiary BPI Family Bank, set aside P5 billion for its Express Pabahay & Express First Home loan packages. These two products are targeted at first-time home buyers, that provide loans as low as P250,000 with the lowest rates (as low as 12 percent p.a.) and with terms of up to 25 years. BPI Family Bank is aiming to expand its business coverage to the affordable housing sector to support the government’s housing program and help jumpstart the nation’s economy.

BPI has 687 branches all over the country and almost 1,000 ATMs nationwide.

Earier, BPI also garnered accolades from foreign financial magazines such as The Asset which named BPI as the "Best Philippine Bank for 2001" and Global Finance: "Best Domestic Bank in the Philippines’ and the Philippines "Best Internet Bank."