BPI Reports Stellar Financial Performance in 2023, Netting P51.7 Billion

Bank of the Philippine Islands (BPI), an esteemed entity in the Ayala-led financial sector, has reported a remarkable 30.5% increase in its net income for the year 2023. The bank’s commendable financial performance is primarily attributed to the surge in revenues and a significant reduction in loan loss provisioning.

In a detailed disclosure to the Philippine Stock Exchange, BPI revealed a net income of P51.7 billion for the previous year, marking a substantial rise from P39.6 billion in 2022. The bank’s earnings reflect an even more impressive 44.1% year-on-year increase when the one-off gain from a property sale in the second quarter of 2022 is excluded from the calculations.

BPI’s revenue generation was robust, with total revenues reaching P138.3 billion, indicating a 16.7% year-on-year growth. This growth is notably driven by a 22.7% increase in net interest income, which amounted to P104.4 billion. Moreover, the bank experienced a modest growth in non-interest income, which stood at P34 billion, bolstered by a 37.0% year-on-year increase in trading income gains that summed up to P5.2 billion. However, this growth was slightly offset by a 3% dip in fee-based income, which was reported at P28.8 billion.

In a strategic move reflecting prudent financial management, BPI reduced its loan loss provisions to P4 billion, marking a significant 56.4% decrease compared to the previous year. This adjustment aligns with the non-performing loans ratio of 1.84% and a robust coverage of 156.1% at the end of 2023.

The bank’s loan portfolio showed vigorous growth, with total loans escalating to P1.9 trillion, indicating a 10.5% increase year-on-year, a testament to the strength across all portfolios. The total deposits followed a similar upward trend, recording a 9.5% increase year-on-year and amounting to P2.3 trillion.

In terms of assets, BPI concluded the year 2023 with a total asset value of P2.9 trillion, marking a 10.9% increase from the preceding year. The bank’s strategic initiatives and robust financial policies have evidently borne fruit, positioning it strongly in the market.

Furthermore, the year 2024 started on a transformative note for BPI with the official merger with Robinsons Bank Corporation effective from January 1, 2024. BPI, as the surviving entity, anticipates that this merger will significantly expand its reach and enrich the banking experience for its customers by leveraging synergies within the BPI Group and Gokongwei ecosystems.

This financial milestone achieved by BPI is reflective of its strong market position, robust financial management strategies, and commitment to delivering exceptional value to its stakeholders.