Bank of Commerce Sets Milestone as it Breaches P3 Billion Net Income in 2024

San Miguel Corporation (SMC) affiliate Bank of Commerce (BankCom) achieved a new milestone as it reported a net income of P3.02 billion as of December 31, 2024, making it the highest profit level since becoming an SMC affiliate in 2008. 

This achievement shows BankCom’s strong commitment to performance, excellence, and continuously improving customer service. It reflects the dedication of its Board and management to becoming the top conglomerate bank in the country. 

For the year 2024, the Bank registered a return on equity (ROE) of 9.44%, more than double the Bank’s IPO prospectus ROE of 4.22%.

The record high profit was backed by growth in its core business, primarily from the expansion in corporate loans and program lending mainly to SMC ecosystem clients.

The bank also recorded growth in fees and commissions mainly driven by the investment banking, card and trust businesses. 

BankCom’s strong revenue growth was due to higher net interest income and service charges, fees and commission.

Net interest income reached P9.11 billion, 10% higher than the P8.30 billion in the previous year. The growth came from the increase in earning assets, mainly corporate and consumer loans with a high focus on SMC ecosystem clients.

Net interest margin (NIM) registered 4.17% as the Bank aggressively priced loans to support its growth in earning assets. 

Other income amounted to P1.65 billion, driven by the 21% expansion in service charges, fees, and commissions. The improvement was propelled by influx in underwriting fees amounting to P292.68 million, almost 2x the fees generated last year. The Bank also saw increases in trust, credit card, and trade finance fees.

The bank has maintained a prudent approach in strengthening its balance sheet by setting aside P139.41 million as additional provision for credit and impairment losses, in-line with its existing risk appetite.

Operating expenses, excluding provision for credit and impairment losses, grew 8% to P6.67 billion versus the P6.16 billion in 2023. The increase in operating expenses was driven mainly by the bank’s continued investment in human capital and technology as well as a higher volume of transactions.

Compensation posted P2.64 billion, up 17% year-on-year due to an increase in manpower count and an improved retention program. Depreciation and amortization (IT related) amounted to P623.17 million, 27% higher than the P489.38 million last year due to its technology investments. Service fees and commissions registered P495.12 million and taxes and licenses of P1.09 billion both rose by 18% and 3%, respectively, due to higher business volume.

The bank’s strategy of improving its revenue streams and prudent spending resulted in a cost-to-income ratio of 62%.  

As of 31 December 2024, total assets amounted to P265.44 billion, translating to return on assets of 1.22%

Total loans and receivables which represents more than 51% of the total assets, hit P136.51 billion, 25% up from last year. The strong growth was driven by the expansion across all segments of lending. The uptrend in loans resulted to a loan-to-deposit ratio of 64%. Gross non-performing loans (NPL) and net NPL ratios were at 1.25% and 0.49% respectively, from 1.54% and 0.44% as of end-2023.

Financial assets at fair value through profit or loss (FVPL) reached P2.88 billion, more than 7x from the P398.79 million last year. Similarly, financial assets at fair value through other comprehensive income (FVOCI) amounting to P19.08 billion, was almost 2x the P11.04 billion posted in 2023. The upward trajectory in financial assets at fair value due to additional purchases. On the other hand, Investments Securities at Amortized Cost declined to ₱36.61 billion or 30.23% from ₱52.47 billion due to redeployment of matured government securities to loans. 

Total deposits posted P212.01 billion, 14% up from last year. This is a milestone for breaching the P200 billion mark. The increase can be attributed to the success of the bank’s promotional strategies and the launch of various targeted marketing initiatives. In 2025 the Bank plans to continue this with its “Accelerate Your Savings” promo Part 2. Broken down, total deposits comprised P189.06 billion current account and savings account (CASA), P17.92 billion time deposits, and P5.03 billion long-term negotiable certificate of deposit (LTNCD).

Bonds payable of P6.53 billion was 13% down from last year due to the maturity of the P7.50 billion 2-year bonds on July 29, 2024. This was offset by a successful P6.57 billion bond offering on May 9, 2024.

BankCom’s capital funds stood at P33.23 billion, showing an 8% growth from last year, even while taking into account the payment of dividends on July 15, 2024. The Bank paid P0.2512 per common share amounting to P352.44 million. The Bank paid P0.2512 per common share amounting to P352.44 million. The increase in capital was attributable to the remarkable performance of the bank and ploughed back earnings. 

The bank’s capital adequacy ratio (CAR) remained strong at 17.58%, 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. 

​The Bank has a network of 140 branches and 267 automated teller machines (ATMs) and cash kiosks as of 31 December 2024 strategically located nationwide.