BPI Sets Record 9M and 3Q23 Net Income

Bank of the Philippine Islands reported a record-high net income of P38.6 billion for the first nine months of 2023, up by 26.4 percent from the prior year and delivering a return on equity of 15.6 percent. Sustained loan and margin growth, as well as tempered provisions, were the main drivers of its strong financial performance.

Total revenues increased by 15.3 percent to P100.9 billion year-to-date, attributable to the 24.5 percent increase in net interest income to P76.8 billion, as average asset base expanded 8.1 percent and net interest margin widened 54 basis points to 4.07 percent. This was partly offset by the 6.6 percent decline in non-interest income to P24.1 billion due to the property sale gain recognized in the prior year. Removing the impact of this one-off transaction, non-interest income would be higher by P3.3 billion or 15.7 percent, on higher fees from credit cards, bancassurance, various service charges, and trading gains.

Operating expenses for the nine-month period increased by 21.3 percent to P48.6 billion, due to larger spending for manpower, technology, and marketing, resulting in a cost-to-income ratio of 48.2 percent.

For the third quarter of the year, BPI recorded net income of P13.5 billion, up 33.3 percent year on year, the highest quarterly net income achieved in the past decade. This was boosted by the 18.3 percent increase in revenues to P35.3 billion on the back of higher net interest income and non-interest income. 

As of September 30, all three major international credit rating agencies have reaffirmed BPI’s credit ratings, namely, S&P at BBB+ (same as the Philippine sovereign rating), Moody’s at Baa2, and Fitch at BBB-. All three also have a stable outlook for the bank.

Read the full disclosure and press statement on the company website or PSE Edge.