BPI posts 19% increase in 1st quarter income

The Bank of the Philippines Islands (BPI) posted a net income of P1.6 billion for the first quarter of 2004, a 19 percent increase over last year’s P1.4 billion, primarily on the back of higher net interest income.

Total revenues grew by 10 percent resulting from a higher net interest income. Net interest margin widened by 47 basis points due to a higher composite yield on loans while deposit cost was maintained at the previous year’s level.

Non-interest income was basically unchanged. Income from the bank’s insurance subsidiaries, asset management fees, rental on bank properties and corporate finance fees showed notable improvements. These were, however, negated by lower income from asset sales, securities and foreign exchange trading gains, and service charges and commissions.

Operating expenses increased by a nominal one percent accounted for by the increase in premises and other operating costs. Manpower expenses were maintained at about the previous year’s level. Salary adjustments granted were largely offset by a two percent decline in manpower count from end December resulting from the bank’s streamlining efforts.

Total resources at P414 billion was slightly below yearend level but was three percent higher year-on-year. Deposits and loans ended at P325 billion and P201 billion, respectively. The bank’s non-performing loan (NPL) ratio based on BSP definition was 7.1 percent, below and at about half of the industry ratio.

BPI’s market capitalization stood at P91 billion as its shares traded at a premium over its book value. The Bangko Sentral ng Pilipinas (BSP) recently approved the bank’s declaration of a 20 percent stock dividend to shareholders of record as of May 6, 2004.

BPI was recognized as the ‘Most Committed to Strong Dividend Policy’ in the Philippines in the 2004 Best Managed Companies poll of FinanceAsia. It was also awarded as the Best Bank in the Philippines by Global Finance and the Best Domestic Commercial Bank by Asiamoney.