Bank of Commerce (BankCom), an affiliate of San Miguel Corporation (SMC), announced a record-breaking P2.8 billion in net profits for the year 2023. This is a 56% increase over the P1.8 billion the previous year. The return on equity at the end of 2023 was 9.52%, up from 7.01% the year before and more than double the 4.22% ROE listed in the bank's IPO prospectus.
The bank's core lending operation saw an increase, which supported its record-high profit. Year over year, net interest income increased by P1.61 billion, or 24%. There was growth in every lending category. Due in large part to the bank's income from its credit card, trust, and investment banking operations, service charges, fees, and commissions also increased. FY2023 Highlights
Key Events
Awards
4Q2023 Highlights
The total income recorded in 2022 was P8.12 billion, but it increased to P9.98 billion, or P1.86 billion, or 23% more. This was mostly caused by the steady increase in trading gains, ROPA-related earnings, service charges, fees, and commissions, as well as net interest income. Due to the strong increase in interest on loans, receivables, and investment securities as a result of higher rates, net interest income was P8.30 billion, or 1.2 times what it was at P6.68 billion the previous year. The amount of other income was P1.68 billion, which was 17% more than P1.43 billion in the previous year. An increase in service charges, fees, and commissions of ₽886.38 million drove the upward growth. These are due to the bank's considerable revenues from investment banking transactions in 2023, the resurgence of its trading and investment securities division, and an increase in profits from the foreclosure and sale of homes, equipment, and other foreclosed assets. On the strength of an increase in loans and investment securities, total assets increased by 7% to P231.67 billion from P217.52 billion the previous year, resulting in a ROA of 1.25%. Total loans and receivables registered P109.57 billion, up P4.47 billion from P105.09 billion last year, mainly due to higher corporate loans. This resulted to a loan-to-deposit ratio of 70%. Net non-performing loans ratio at end-2023 was at 0.44% from 0.60% in 2022, reflecting strength in asset quality due to the bank’s focused risk appetite. Meanwhile, gross NPL ratio was at 1.54%, better than the industry average of 3.23% as of December 2023. This is also an improvement from the 2.10% at end-2022. Deposits, which make over 80% of total assets, increased by P9.64 billion to P185.91 due to a P164.24 billion, or 7%, increase in CASA. As of December 31, 2023, the bank's capital funds were P30.85 billion, 10% more than P28.03 billion recorded the previous year. This increase was mostly due to the bank's outstanding performance and reinvested earnings. Furthermore, the bank's Tier 1 and CAR remained robust at 19.09% and 19.88%, respectively, and were much above the minimum regulatory requirements of 7.5% and 10.0%.
0 Comments
Leave a Reply. |
PLACE YOUR ADS HERE Join and Subscribe to my Newsletter. It's FREE! ABOUT THE
BLOGGER Hi, I'm Ralph Gregore Masalihit! An RFP Graduate (Registered Financial Planner Institute - Philippines). A Personal Finance Advocate. An I.T. by Profession. An Investor. Business Minded. An Introvert. A Photography Enthusiast. A Travel and Personal Finance Blogger (Lakbay Diwa and Kuripot Pinoy). Currently, I'm working my way toward time and financial freedom. Follow me on FACEBOOK x PLACE YOUR ADS HERE PLACE YOUR ADS HERE Categories
All
|