MANILA, Philippines - Net income of the Bank of the Philippine Islands rose 37% to P13.2 billion in the nine months to September from year-ago levels.
"The solid performance can be attributed to the strong revenues which were up by 17.6% coming from both the net interest income and non-interest income," BPI said in a statement on Tuesday.
BPI noted net interest income increased by an annual rate of 7.8% in the first three quarters, while non-interest income surged by 34% year-on-year buoyed by higher securities trading gain.
The firm's income as of September translated to a 19.2% return on equity and 2.1% return on assets.
"We are however faced with the risks of narrowing net interest margin (NIM) amid the recent 25 basis points cut in the benchmark policy rate of the BSP (Bangko Sentral ng Pilipinas)," BPI President and Chief Executive Officer Aurelio R. Montinola III said in the statement.
"Nevertheless, we will strive to maintain our NIM at previous year's level by continuously growing the higher yielding loan segments and the low cost current and savings deposit on the funding side," he added.
The central bank last week cut key policy rates to a record low of 3.5% for overnight borrowing and 5.5% for overnight lending. The BSP's reduction in rates translates to lower bank lending rates.