 San Miguel Corporation (SMC) affiliate Bank of Commerce (BankCom) started the year strong by registering a net income of P866.79 million as of 31 March 2025, up 13% versus same quarter last year. The Bank delivered growth across various revenue streams: net interest income, trading securities and foreign exchange gains. The first quarter results showcase the Bank’s sustained momentum and robust performance of its core businesses. The revenue growth translated to a return on equity (ROE) of 10.27%, reflecting the continued execution of strategies to optimize the use of capital.
FINANCIAL HIGHLIGHTS 1Q 2025 YoY:
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Revenues Gross revenue growth was mainly due to higher net interest income, trading securities and foreign exchange gains, as well as ROPA related gains. Net interest income posted P2.49 billion, up 11% from the P2.25 billion in the prior year on account of expansion across all segments of lending, mainly on the corporate aspect focused on the client rich SMC ecosystem. The targeted asset deployment and prudent management of funding translated to a net interest margin (NIM) of 4.24%. Other income grew significantly by 26% from P398.34 million in the same period in 2024 to P503.09 million. The substantial growth was primarily due to favorable securities trading, foreign exchange gains and ROPA related revenues. The Bank was also able to generate higher trust, credit card and trade finance fees. The Bank remained to be conservative in its provisioning for credit and impairment losses with a non-performing loans coverage ratio of 92.34%. Operating expenses, excluding provision for credit and impairment losses expanded by 11% to P1.79 billion, consistent with the Bank’s efforts to broaden its market share. Notwithstanding the rise, the cost-to-income ratio was pegged at 60%, evident of Bank’s operational efficiency amid revenue expansion. Operating expenses rose on the back of the continued investment in human capital and technology as well as a higher volume of operational transactions. Compensation registered an increase of 17% to P712.73 million, owing mainly to higher head count. Depreciation and amortization amounted to P160.03 million, 12% more than the P142.99 million last year due to depreciation of technology investments. Amortization of software costs amounted to P32.84 million due to various software services. Service fees and commissions expense amounted to P88.98 million, and taxes and licenses of P320.80 million increased by 0.2% and 11%, respectively, due to expansion of business volume. Balance Sheet Total assets stood at P257.08 billion, translating to return on assets of 1.33%. Total loans and receivables which represent more than 50% of the total assets, increased to P138.74 billion, P2.24 billion or 1.64% up from last year. The sustained growth was driven by the expansion in the lending business and resulted to a loan-to-deposit ratio (LDR) of 74%. Gross non-performing loans (NPL) and net NPL ratios were at 1.35% and 0.50% respectively, industry lows. Financial assets at fair value through profit or loss (FVPL) rose to P6.33 billion from last year’s P2.88 billion due to additional placements. Financial assets at fair value through other comprehensive income (FVOCI) increased by 14% from the previous year’s P19.08 billion to P21.77 billion. Additionally, Investments Securities at Amortized Cost increased to P43.91 billion, 20% more than the P36.61 billion in 2024. Total deposits amounted to P188.89 billion. Broken down, total deposits comprised P167.58 billion current account and savings account (CASA), P16.28 billion time deposits, and P5.03 billion long-term negotiable certificate of deposit (LTNCD). Bonds payable significantly increased to P24.39 billion, almost 4x from last year as the Bank raised P18 billion from its bond issuance in 19 February 2025. This represents the third tranche of Bank’s increased P50 billion Peso Bond Program and the proceeds will be used for the balance sheet management, diversification of funding sources, and general corporate purposes. The bond issue oversubscription shows that investors trust the Bank's strong foundation and believe in its clear and solid business strategies. BankCom’s capital funds remained strong at P34.31 billion with a 3% growth from last year. The increase in equity was driven by the sustained performance of the Bank and ploughed back earnings. The bank’s capital adequacy ratio (CAR) remained strong at 17.80%, well above the minimum regulatory requirement of 10.0%. An affiliate of San Miguel Corporation (SMC) since 2008, Bank of Commerce is a publicly-listed universal bank focused on helping its clients, communities and conglomerate partners by delivering the best choice of financial services harnessing the strengths of the SMC Group. Bank of Commerce is identified by its logo bearing the SMC symbols of escudo and cloverleaf, and by the trademark license short name "BankCom" granted by the Intellectual Property Office (IPO) in 2020. BankCom traces its origins to the Overseas Bank of Manila which opened in Binondo, Manila in 1963. BankCom posted a net income of P3.02 billion as of 31 December 2024, up by 8% from P2.80 billion in 2023. This is the highest profit level since becoming an SMC affiliate in 2008. As of 31 March 2025, BankCom maintains a network of 140 branches and 270 automated teller machines (ATMs) including Cash Kiosks strategically located nationwide. |
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