Bancommerce posts 6-fold hike in net income

Bank of Commerce, a mid-sized commercial bank controlled by the family of businessman Antonio O. Cojuangco, reported an after tax income of P209 million for the first six months of the year for an annualized return on average equity of 12 percent. This reflects a 605-percent increase from the net income posted in the same period last year. The growth is a result of net interest revenues which were higher on account of improved margins, despite a climate of falling interest rates that reduced the yield on assets. It also strengthened its fee-based transactions through pro-active positioning in government securities and foreign exchange.

Total deposits grew by 32 percent even prior to acquisition of Traders Royal Bank (TRB) branches. Because of the general slack in the credit market and the bank’s cautious lending stance, the bank’s loan portfolio inched by less than three percent.

For the remaining part of the year, Bank of Commerce plans to capitalize on its expanded distribution channels after its successful acquisition of TRB where its branches more than doubled in number. Its president, Raul de Mesa, stressed that the bank "will continue to pursue its expansion plans by evaluating opportunities presently available through more merges and acquisitions."