EPCIB net income up 11% to P1.27B in January-June

The Equitable PCI Bank (EPCIB) posted a net income of P1.27 billion in the first semester, up by 11 percent from the P1.14 billion in the same period last year. In the first six months of 2004, the bank reported net earnings of P682 million.

EPCIB officials said that the strong performance was due to the robust growth in non-interest income and controlled operating expenses despite weak loan growth and volatile interest and foreign exchange rates.

In a statement, the Yuchengco-led commercial bank reported that non-interest income grew by 16 percent year-on-year (Y-O-Y) to P4.3 billion, driven by the 11-percent rise in service charges, fees, and commissions. Likewise, the build-up in fee-based income sources including branch banking, remittance, trust banking, bancassurance, credit cards, and corporate cash management, also constituted to the 11 percent gain.

EPCIB said the P893 million in trading gains and modest foreign exchange profits complimented the prudently managed investment portfolio "in the midst of instability in the capital market in May and June of this year."

Operating expenses were contained at P6.57 billion due to a conscious effort to control costs amid inflationary pressures arising from the continuing surge in oil prices.

Total deposits expanded by 10 percent to P228.3 billion, from P206.7 billion in December 2005, with savings and demand deposits up by 15 percent and nine percent, respectively.

"The successful execution of business strategies to broaden the higher-margin middle market and consumer loan portfolio, enlarge the low-cost deposit base, enhance non-interest income, and manage operating expenses clearly produced noteworthy results," Rene J. Buenaventura, EPCIB president and chief executive officer, said.

Buenaventura said EPCIB is seeking ways to fortify its capital position through a stronger balance sheet coupled with a solid franchise in select business segments.

EPCIB reported an audited net income of P2.7 billion for the whole of 2005. The 2004 income figure was restated to P2.4 billion, much higher than the original figure of P1.8 billion reported in the first quarter of 2005 prior to adjustments required by the Bangko Sentral ng Pilipinas (BSP).

EPCIB operates 400 branches and more than 600 FASTeller ATMs nationwide.