Bank of the Philippine Islands (BPI) proudly announced during its Annual Stockholders Meeting today its outstanding performance during the first quarter of 2024, with a record-breaking net income of P15.3 billion. This achievement marks a remarkable 25.8% increase from the previous year, showcasing BPI’s unwavering commitment to excellence and financial prowess.
The significant rise in net income is attributed to higher revenues, which effectively offset the impact of increased operating expenses and provisions for losses. Earnings per share for the quarter reached P2.90, reflecting an impressive 18.1% surge from the previous year’s P2.46. This growth is fueled by robust income and an increased number of outstanding shares following the merger with Robinsons Bank on January 1, 2024.
Total revenues soared to P39.5 billion, marking a substantial 24.6% increase from the previous year. This surge was primarily driven by a 23.5% rise in net interest income to P29.8 billion, supported by an 18.5% increase in the average daily loan balance and a 25-basis point rise in net interest margin to 4.19%. Non-interest income also witnessed a significant uptick, reaching P9.7 billion, driven by the bank’s thriving businesses in insurance, credit cards, and wealth management.
Despite a 19.6% increase in total operating expenses, which amounted to P18.0 billion, the cost-to-income ratio improved to 45.6% due to robust revenue generation. Pre-provision operating profit surged by 29.2%, demonstrating BPI’s efficiency and profitability.
BPI’s total assets expanded by 14.7% to P3.1 trillion, with gross loans reaching P2.0 trillion, up by 18.7% from the previous year. Total deposits reached P2.4 trillion, reflecting a 12.8% increase, with a CASA ratio of 64.8% and a loan-to-deposit ratio of 84.0%.
Despite the impressive loan growth, BPI maintains strong asset quality, with the non-performing loan (NPL) ratio at 2.12% and an NPL cover at 136.20%. Additionally, the bank’s total equity stood at P403.1 billion, with indicative Common Equity Tier 1 and Capital Adequacy Ratios well above regulatory requirements.
In March 2024, BPI issued a US$400 million 5-year senior unsecured fixed-rate note with a coupon of 5.25% p.a., payable semi-annually. This issuance, the first of its kind since 2019, underscores BPI’s global financial presence and stability. The note, listed on the Singapore Exchange Securities Trading Ltd., was issued at a spread of 105 basis points, marking the tightest spread on a 5-year bond from a non-sovereign Philippine issuer.
BPI’s exceptional performance in Q1 2024 reflects its steadfast commitment to delivering value to shareholders while maintaining financial stability and growth. With its continued dedication to excellence, BPI remains a beacon of strength in the Philippine banking sector.
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