BPI books highest quarterly income since start of pandemic

ABS-CBN News

Posted at Jul 22 2021 04:54 PM

MANILA - Bank of the Philippine Islands on Thursday said it posted a net income of P6.8 billion in the second quarter, which was the bank’s highest quarterly income since the start of the
pandemic. 

The Ayala-led bank said its Q2 income was up 28.8 percent from the same period last year, and also 36.3 percent higher than the first quarter of 2021 due to lower provisions recognized. 

This brought BPI’s net income for the first half to P11.8 billion, up 1.2 percent year-on-year.

BPI said it booked provisions of P6.5 billion, lower by 55.7 percent than the P14.7 billion booked over the same period last year. The bank’s non-performing loan (NPL) ratio meanwhile was 2.94 percent, with NPL coverage ratio at 120.3 percent, it added. 

Last year, BPI’s net income fell 25.7 percent as the company booked P28 billion in provisions for loan losses due to the impact of the COVID-19 pandemic on the economy. 

The Bangko Sentral ng Pilipinas on Wednesday said the banking industry remains optimistic despite forecasting the bad loan ratio remaining high in the short term.
 
The BSP said a majority of the banks it surveyed expect their NPL ratio to exceed 5 percent in the next two years.

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