Bank of The Philippines Islands has had exceptional performance in the past year. It increased net profits by 17.5% via increasing top-line revenues and management of overhead costs. Loans increased by 9% while all segments – top tier corporates, middle market and consumer – expanded.
The bank’s management of NPLs was also remarkable. It has sold a consistent part of its NPLs to clean up its balance sheet and improve profitability by re-investing proceeds to interest bearing papers.
BPI’s foreign expansion plans have included a 50-50 joint venture with the Yuchengco Group of Companies to form Universal Malayan Reinsurance Corporation, the country’s second largest domestic reinsurance company.
“Bank of the Philippine Islands has delivered a solid performance in the first semester,” says Aurelio R. Montinola III, president of the bank. “Net income has grown 23% year on year and ROE is 16%. Due to our high capital position and our strong franchise, we have managed to combine modest organic growth, an impending purchase of a medium-sized commercial bank, and an 80% dividend payout ratio all this year. Retail banking and asset management are our strengths, but we have also managed two landmark NPL asset sales this year and won a corporate governance award.”
