Bank of the Philippine Island's (BPI) net income reached P9.4 billion in the first half of the year, 52% higher than the P6.2 billion realized in the same period last year. This was driven by the 24% rise in revenues as net interest income rose by 9%, while non-interest income surged by 51%.
Net interest income improved as a result of an increase in average asset base and a 14 basis point improvement in net interest spread. Non-interest income was boosted by trading gains realized in the first quarter of the year as the bank sold down its securities inventory at that time.
The bank's loan growth remained strong across all segments. Total net loan portfolio grew by 17%.
Both the middle market and SME segments grew by 19% while the top corporate segment increased by 15%. Consumer lending increased by 17%.
Despite the double-digit growth in loans, asset quality continued to improve with net 30-day NPL ratio down to 1.4%. With operating expenses growing at a slower rate, BPI's cost-to-income ratio improved.
BPI's first semester net income performance translates to a return on equity of 21%. - https://www.affordablecebu.com/
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"Bank of the Philippines Islands (BPI) posts P9.4 billion net income in 1st half of 2012" was written by Mary under the Banking category. It has been read 2224 times and generated 1 comments. The article was created on 10 August 2012 and updated on 10 August 2012.
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