• Philippines’ BPI reported a net income of 15.3 billion pesos in the first quarter.
• Their revenue was 39.5 billion pesos, showing a 25% growth y/y, exceeding the estimate of 37.68 billion pesos.
• The bank’s net interest income was 29.8 billion pesos.
• Non-performing loans ratio stood at 2.12%.
• Return on equity was 15.7%, slightly higher than the estimate of 15.5%.
• BPI mentioned in a statement that the 25.8% rise in 1Q net income from the previous year was due to higher revenues offsetting higher operating expenses and provision for losses.
• Q1 revenues were driven by a 23.5% y/y growth in net interest income, due to higher loans and increased net interest margin.
• Non-interest income increased by 28.1% y/y to 9.7 billion pesos.
• Operating expenses for the first quarter rose by 19.6% y/y to reach 18 billion pesos, resulting from spending on manpower, technology, marketing campaigns, and transaction fees.
• Total assets reportedly rose by 14.7% to 3.1 trillion pesos.
• Gross loans also increased by 18.7% y/y, reaching 2 trillion pesos.
• Total deposits saw 12.8% y/y growth, amounting to 2.4 trillion pesos.
• The bank’s NPL cover was at 136.2% and the capital adequacy ratio stood at 15.6%.
A look at Bank of the Philippine Islands Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Bank of the Philippine Islands is poised for a promising long-term outlook, based on the Smartkarma Smart Scores. With strong scores for Growth, Resilience, and Momentum, the company is positioned to excel in the market. The high score for Resilience indicates the company’s ability to withstand economic challenges, while the Momentum score suggests a positive trend in the company’s performance. Additionally, the solid score for Growth showcases the company’s potential for expansion and increasing profitability. Although the Value and Dividend scores are not as high, the overall outlook for Bank of the Philippine Islands appears optimistic.
Bank of the Philippine Islands, a provider of commercial banking services, has developed a range of innovative products to meet the needs of its customers. From ATM and debit card systems to credit cards and electronic cash cards, the company offers a diverse set of services. With an internet platform and other offerings, Bank of the Philippine Islands continues to adapt to the evolving financial landscape. As indicated by its Smartkarma Smart Scores, the company’s focus on growth, resilience, and momentum positions it well for long-term success in the banking industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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