BPI earnings climb to ₱6.8B in Q2 2021

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Metro Manila (CNN Philippines, July 22) — The Bank of the Philippine Islands reports higher earnings in the second quarter of the year despite the raging COVID-19 health crisis.

In a disclosure to the local bourse Thursday, the Ayala-led bank reported a net income of ₱6.8 billion — up 28.8% from the same quarter last year and higher by 36.3% from the first three months of 2021.

The recent figure is BPI's highest quarterly income since the pandemic began, it said, attributing the bigger tally to "lower provisions recognized." The bank's second quarter earnings brought net income for the first half of the year to ₱11.8 billion, a 1.2% annual growth.

However, the company saw total revenues fall by 6.7% between January to June to ₱48.1 billion.

One of the country's largest banks, BPI assigned ₱6.5 billion in loan provisions for the period a 55.7% plunge. BPI also reported a non-performing loan ratio of 2.94% and a NPL coverage ratio of 120.3%.

Total loans reached ₱1.4 trillion as of end-June, declining by 4.5% due to "softer" demand for corporate, small and medium enterprise, and auto loans. Overall deposits also dwindled by 4.5% to ₱1.7 trillion.

"Net Interest Income dropped by 6.6% to ₱33.9 billion, as NIM contracted by 24 bps from 3.56% to 3.32% as earning asset yields declined by 85 basis points," it said, adding non-interest income likewise dropped by 7.1% to ₱14.3 billion mainly due to lower trading income.

Fees and commissions, meanwhile, surged by 37.2% across the company's fee-based businesses.

BPI's total assets stood at ₱2.2 trillion, a 3% decrease, it added.

"Total Equity increased to P285.8 billion, with an indicative Common Equity Tier 1 Ratio of 16.95% and a Capital Adequacy Ratio of 17.82%, both above regulatory requirements. Return on Equity was 8.4%, while Return on Assets was 1.1%," noted the bank.

BPI is among the Philippine banks which received an outlook downgrade from "stable" to "negative" from global debt watcher Fitch Ratings following a similar revision to its outlook for the domestic economy.