Bank of the Philippine Islands (BPI) Earnings at P15.3 Billion in Q12024

For the first three months of 2024, the Bank of the Philippine Islands (BPI) announced a record quarter net income of P15.3 billion, up 25.8% from the previous year and translating into a return on equity of 15.7% and a return on assets of 2.02%. The bank attributed the strong results to higher revenues, which more than countered the effects of higher expenses for operations and loss provision. The first quarter's earnings per share were P2.90, up 18.1% from P2.46 in the previous year. This increase was attributed to both the robust income growth and the higher number of outstanding shares that resulted from the January 1, 2024, merger with Robinsons Bank.

At P39.5 billion, the total revenue for the quarter increased by 24.6% over the previous year. This was caused by a 25 basis point improvement in net interest margin to 4.19% and a 23.5% increase in net interest income to P29.8 billion, which was supported by an 18.5% increase in the average daily loan balance. The bank's non-interest income increased by 28.1% to P9.7 billion, mostly due to the strength of its credit card, wealth management, and insurance operations.

The quarter's total operating expenses increased by 19.6% to P18.0 billion, mostly due to increases in labor costs, technology, marketing expenditures, and transaction processing fees. Strong revenue generation allowed the cost-to-income ratio to continue improving, reaching 45.6%. Operating profit before provisions rose by 29.2%.

Gross loans increased by 18.7% to P2.0 trillion from the previous year, while total assets increased by 14.7% to P3.1 trillion. With a 12.8% increase in total deposits to P2.4 trillion, the CASA ratio was 64.8% and the loan-to-deposit ratio was 84.0%. Even after deducting the loans and deposits obtained from the merger, there was still a noticeable, strong growth in both loans and deposits. Loans increased by 11.9% while deposits increased by 6.0% when Robinsons Bank's initial deposits and loans were taken into account. All loan categories saw robust growth, with microfinance, business bank/SME, and personal loans leading the way with 57.2%, 45.8%, and 147.4%, respectively.
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The asset quality was well managed, with the NPL ratio at 2.12% and the NPL cover at 136.20%, notwithstanding the robust expansion in loans.

With an indicative Common Equity Tier 1 Ratio of 14.7% and a Capital Adequacy Ratio of 15.6%—both well above regulatory requirements—the bank's total equity was P403.1 billion.
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A US$ 400 million 5-year senior unsecured fixed rate note with a yield of 5.25% p.a. that is payable semi-annually was issued by BPI in March 2024. This is BPI's first US dollar bond issue since 2019. The note was issued by a non-sovereign Philippine issuer at the tightest spread ever—105 basis points—for a 5-year bond. Singapore Exchange Securities Trading Ltd. is where the bond is listed.

​Founded in 1851, Bank of the Philippine Islands (BPI) is the first bank in the Philippines and in the Southeast Asian region. BPI is a universal bank and together with its subsidiaries and affiliates, it offers a wide range of financial products and solutions that serve both retail and corporate clients.

BPI's services include consumer banking and lending, asset management, payments, insurance, securities brokerage and distribution, foreign exchange, leasing, and corporate and investment banking.