BPI posts highest quarterly income since the start of the pandemic

The Bank of the Philippine Islands (BPI) announced that it posted a net income of ₱6.8 billion in Q2, the bank’s highest quarterly income since the pandemic started.

The Ayala-led bank said its Q2 income was up 28.8% year-on-year, and 36.3% higher than Q1 due to lower provisions recognized.

This brings BPI’s net income for the first half to ₱11.8 billion, up 1.2% year-on-year.

BPI said it booked provisions of ₱6.5 billion, lower by 55.7% than the ₱14.7 billion booked through the same period last year. The bank’s non-performing loan (NPL) ratio meanwhile was 2.94%, with an NPL coverage ratio of 120.3%.

Last year, BPI’s net income fell 25.7% as it booked ₱28 billion in provisions for loan losses due to the impact of COVID-19 on the economy.

The Bangko Sentral ng Pilipinas (BSP) on Wednesday expressed optimism in the banking industry despite predicting loan ratios remaining high in the short term.

The BSP also said a majority of the banks it surveyed expect their NPL ratio to exceed 5% in the next two years.

SOURCE: ABS-CBN