MANILA, Philippines – The Bank of the Philippine Islands (BPI) and the Aboitiz-led Unionbank ended 2024 on a high note, as both banks recorded double-digit growth in their full-year bottomlines.
BPI booked another year of record net income, as the Ayala-owned bank saw its 2024 bottomline grow 20% to P62 billion. Meanwhile, record revenues pushed Unionbank’s net income to climb 31% to P12 billion.
In a disclosure to the Philippine Stock Exchange, BPI said revenue partially offset higher operating expenses and provisions.
For the fourth quarter of 2024, BPI logged a topline of P170.1 billion, a 23% jump year-on-year due to higher net interest income and a 16.8% expansion of its asset base.
Non-interest income in the final quarter of last year also rose 25.3% to P42.6 thanks to higher income from BPI’s credit, wealth management and bancassurance businesses, as well as gains from security trading.
BPI’s total loans stood at P2.3 trillion, 18.2% higher than in 2023, as the bank acquired the loan portfolio of Robinsons Bank following their merger. Even without this one-off acquisition, the bank’s loans still grew 13%.
According to BPI, its institutional loans grew 11.1%, while the business banking segment triggered a 41.7% surge in non-institutional loans. Personal loans also grew 92.1%
BPI’s non-performing loans (NPL) ratio was at 2.13%, while its NPL coverage ratio was pegged at 106.2%. Its total equity also stood at P430.5 billion, with a Common Equity Tier 1 (CET 1) ratio of 13.8% and Capital Adequacy Ratio (CAR) of 14.5%. Both ratios remain above regulatory requirements.
The Ayala-owned bank also saw record earnings in 2022 and 2023.
Record revenues for Unionbank
As for Unionbank, its stronger consumer business, margin expansion and higher fee-based revenues brought net income up to P12 billion in 2024.
The Aboitiz-led bank had record net revenues of P79.5 billion, a 12.4% increase from 2023. Its net interest income also grew to P58 billion as net interest margins jumped 49 basis points to 6%.
Consumer loans now account for 61% of Unionbank’s total loan portfolio, nearly thrice the industry average, after its acquisition of Citi’s consumer business. This includes credit card loans, mortgages, personal loans, and vehicle loans.
Unionbank’s chief financial officer Manuel Lozano attributed the bank’s record-high topline to its retail-focused strategy.
“We should see the continued improvements in our net income moving forward, as we realize the synergies brought about by our integrated consumer operations,” he said.
BPI’s share prices jumped 3.27% to P120 apiece in Monday trade, while Unionbank’s shares climbed 2.03% to P35.15 per share. – Rappler.com