BPI Building in Makati City, at the corner of Ayala Avenue and Paseo de Roxas. (Photo credit: Wikipedia)Ayala-owned Bank of the Philippine Islands (BPI) said its an unaudited net income reached P12.8 billion last year, up 13.4 percent from P11.3 billion in 2010.
BPI president and chief executive officer Aurelio Luis R. Montinola III said in turn, they are targeting a 13-to 15-percent expansion in its lending this year as they anticipate another double-digit growth in earnings.
“We look forward to 2012 as a better year for the country and for BPI, as we intend to continue our loan growth path and differentiate ourselves through superior relationship managers and further use online banking,” the bank official added.
“We exceeded our five million customer base goal, improved our ROA (return on assets) to 1.6 percent, and maintained ROE (return on equity) above 15 percent during our 160th anniversary.”
Total revenues grew seven percent on the back of a 10-percent expansion in net interest income. That, in turn, was fueled by the growth in average asset base to P48 billion.
“Net interest margin was not only preserved but ended higher by 13 basis points,” Montinola said.
Non-interest income was likewise three percent higher due to an increase in service charges, trust fees, income from the insurance companies and credit card income.
Operating expenses, however, increased 12 percent with almost half generated by salary-related costs. Manpower cost though remained at 48 percent of total expenses. Also adding to the operating expenses were premises costs, regulatory costs, and other variable costs.
Impairment losses were lower at P2.15 billion in view of the continuous decline in non-performing assets.
Total resources of P843 billion were slightly lower by almost four percent than the previous year’s figure of P877 billion.
Total deposits contracted by about five percent to P681 billion, while total intermediated funds reached P1.35 trillion, or a 12-percent increase, as assets under management went up 38 percent.
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