BPI reports P5.2-B net income, P1.33 EPS for Q4 2014
|P18.0-B net income, P4.59 EPS for full year 2014|
Makati City, Metro Manila–Bank of the Philippine Islands (BPI) posted an unaudited net income of
P5.2 billion and earnings per share (EPS) of P1.33 in 2014 Q4. This represents a 72% increase over P3.0 billion in net income earned in 2013 Q4, a 10% sequential increase from 2014 Q3, and the fourth straight consecutive increase in quarterly net income for the Bank.
On a full year basis, net income amounted to
P18.0 billion, a 4% decline from 2013, which included extraordinary gains from securities trading. Furthermore, total comprehensive income amounted to P18.0 billion, a 27% increase from 2013.
BPI’s core business in lending to corporate and retail clients continued to drive growth. Net loans reached
P800 billion, an increase of 26% over year-end 2013. Deposits ended at P1,176 billion, an increase of 19% over year-end 2013. Furthermore, the Bank registered a CASA ratio of 69%. For all of 2014, net interest income grew 15%, to P34.8 billion.
Non-interest income amounted to
P21.0 billion for the year, representing a 5% decline compared to 2013. Income from securities and foreign exchange trading was P3.1 billion, a significant reduction relative to P6.3 billion one year ago. As of year-end 2014, Held for Trading (HFT) and Available for Sale (AFS) securities portfolios totaled P67.2 billion, a 27% reduction relative to year-ago levels. Non-interest income excluding securities and foreign exchange trading income was P17.8 billion, a 13% increase from the prior year.
Operating expenses grew by 11%, attributable to the Bank’s investment in infrastructure, technology and additional headcount. The Bank’s manpower complement was 14,542 as compared to 13,024 at end-2013, a 12% increase. Cost-to-income ratio ended the year at 53%.
BPI maintained strong asset quality and capitalization ratios as of the end of 2014. Gross 90-day NPLs fell to 1.51% of total loans, as compared to 1.74% one year ago and 1.78% at the end of 2014 Q3. BPI’s reserve levels, which attribute no value to collateral, rose to 110% of NPLs, from 107% in the prior quarter. Equity capital ended 2014 at
P144 billion, resulting in a Basel III Capital Adequacy Ratio (CAR) of 14.85% and CET 1 ratio of 13.97%. The Bank raised P25 billion of capital in a rights issue in January 2014. The additional capital was a key factor in the decline in the Bank’s return on equity, which ended the year at 13.8% from 18.1% in 2013.
BPI’s board of directors has approved a cash dividend of
P0.90 per share in respect of 2014 H2. The Bank anticipates settlement to shareholders around the first week of March, pending receipt of BSP approval.
“BPI enters 2015 with good momentum,” says Cezar P. Consing, President and CEO. “In 2014, we used the capital that we raised to invest for the future and meet robust loan demand. At the end of last year, we inked a JV with Century Tokyo Leasing, to broaden our suite of products for corporate clients. We also announced a strategic partnership with Global Payments, as we look to better serve our merchant clients and enhance the experience of BPI cardholders. We have mobilized our firm to focus more sharply on customers—and this bodes very well for our future financial performance.”
|REGULAR CASH DIVIDEND PAYMENT|
Bank of the Philippine Islands has received approval from the Bangko Sentral ng Pilipinas for its regular cash dividend of P0.90 per share for the second semester of 2014 on the total outstanding common shares of the Bank. This will be payable to all common shares stockholders of record as of February 24, 2015 and distributable to the said stockholders on March 17, 2015.
Member: PDIC. Maximum Deposit Insurance for Each Depositor P500,000.