The Bank of the Philippine Islands posted a net income of P6.4 billion in the fourth quarter, 51.2% higher than the same period last year, and 13.2% higher quarter-on-quarter. Improving mobility conditions led to higher transaction volumes which fueled the sequential growth in revenues by 9.7% quarter-on-quarter.
Full year 2021 net income was P23.88 billion, higher by 11.5% year-on-year, driven by lower provisions and record-high fee income. Total revenues declined by 4.2% to P97.40 billion. Net interest income stood at P69.58 billion, lower by 3.7% compared to the previous year, as NIM contracted by 19 bps from 3.49% to 3.30% driven by lower yields across most loan portfolios and treasury assets. Non-interest income declined by 5.5% to P27.82 billion due to lower trading income but this was tempered by a 23.2% boost in fee income, with the performance rebound in most business lines surpassing 2019 levels.
Total operating expenses for the year reached P50.73 billion, up 5.4% on the back of higher technology cost. Cost-to-Income ratio stood at 52.1%.
The Bank booked provisions of P13.13 billion, 53.1% lower compared to the P28.00 billion recorded last year. NPL ratio was at 2.49%, with NPL coverage ratio at 136.1%.
Total loans ended at P1.48 trillion, a 4.9% increase year-on-year, due to higher mortgage, credit card, and microfinance loans. Total deposits increased by 13.9% to P1.96 trillion, coming from CASA and time deposit growth of 10.3% and 28.2%, respectively. The bank’s CASA Ratio was 77.0%, while the Loan-to-Deposit Ratio was 75.5%.
Total assets stood at P2.42 trillion, up 8.4% year-on-year. Total equity increased to P293.06 billion, with an indicative Common Equity Tier 1 Ratio of 15.8% and a Capital Adequacy Ratio of 16.7%, both comfortably above regulatory requirements. Return on Equity was 8.4%, while Return on Assets was 1.1%.
On January 1, 2022, the merger of BPI and BPI Family Savings Bank, its wholly owned thrift bank subsidiary officially took effect, with BPI as the surviving entity. The merger enables the bank to seize and optimize opportunities to enhance the overall banking experience of its customers. As OneBPI, customers will have access to the full suite of BPI group’s products and services, via its digital and physical channels. Post-merger activities will start in the first quarter of 2022 and targeted for completion by the end of 2022.