MANILA, Philippines – Banks in the Philippines continued to see their net incomes grow in the first quarter of the year despite policy shifts in the global economy.
The SM Group of Companies’ two banks, China Banking Corporation (Chinabank) and Banco de Oro (BDO), were among the heavyweights that saw the biggest jump in their quarterly profits.
Chinabank’s profit grew 10% to P6.5 billion, while BDO’s bottomline climbed 7% to P19.7 billion.
Both Sy-owned banks attributed their bottomline growth this quarter to sustained growth across their core businesses.
BDO said its loans jumped 12% to P3.3 trillion, with consumer loans growing 17.% and its middle market loans by 12.7%. Chinabank’s loan portfolio also grew 19% to P954 billion thanks to brisk lending to consumers and businesses alike.
Despite their growing loan portfolios, BDO’s non-performing loans (NPL) ratio eased to 1.77% while Chinabank’s NPL ratio remains above industry average at 1.5%.
SM Investments’ president and CEO Frederic Dybuncio told Rappler in an earlier interview that they hope to further tap growth opportunities in the provinces.
“There’s still so many unbanked Filipinos, so many in the province who don’t experience what modern retail trade is about, and those are the things and the areas that we wanna focus on to continue uplifting Filipino lives,” he said.
Another banking heavyweight that sustained its profit growth in the first quarter is the Bank of Philippine Islands (BPI), with its first quarter net income climbing 9% to P16.6 billion.
The Ayala-owned bank cited soaring revenues which offset a rise in its operating expenses. This was mainly driven by a 15.3% jump in net interest income, while non-interest income also grew 6.3% due to higher credit card fees and service charges.
Loan growth also contributed to the Metropolitan Bank and Trust Corporation’s (Metrobank) 2% climb in its bottomline to P12.3 billion.
The Ty-owned bank’s net interest income edged up to P29.4 billion, with its gross loans jumping 16.1% thanks to substantial growth in its commercial and consumer loans portfolio.
“Our first quarter performance keeps us on track in achieving our medium-term growth strategies even as global uncertainties continue to persist. Our strong capitalization and healthy portfolio give us and our clients the assurance on our ability to navigate the changing economic landscape,” said Metrobank’s president and CEO Fabian Dee. – Rappler.com