Ayala-led Bank of the Philippine Islands (BPI) booked P11.7 billion in net profit in the first semester, down by 7.7 percent year-on-year in the absence of one-time treasury gains that boosted comparative income last year.
Excluding one-off income from the sale of held-to-maturity securities that increased comparative earnings last year, net income for the first semester went up by 48 percent, the bank said in a regulatory filing yesterday.
Total revenue was flat at P35.3 billion. Net interest income rose by 13.6 percent year-on-year to P23.5 billion supported by a wider average net interest margin and greater lending activities relative to deposits generated.
Non-interest income fell by 18.4 percent year-on-year to P11.8 billion due to the decline in securities trading gains.
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In June 2016, BPI sold a portion of held-to-maturity securities to fund loan growth, reduce high cost deposits and enhance capital. The absence of such one-off trading gains this year was partially offset by higher fee-based income, which grew at a robust pace of 17.8 percent year-on-year, driven by cards and payments, service charges and investment banking businesses.
Operating expenses ended at P18.3 billion, higher by 5.4 percent due to higher spending on technology and some increase in regulatory costs.
