BPI net income falls 5.7 percent in first half

ABS-CBN News

Posted at Aug 01 2018 09:02 AM | Updated as of Aug 01 2018 09:03 AM

A Bank of the Philippine Islands branch in Quezon City. Mark Demayo, ABS-CBN News/File

MANILA -- Bank of the Philippine Islands said net income in the January to June period fell 5.7 percent, as lower non-interest income declined and costs grew.

The country's third largest lender by assets said late Tuesday it posted net income of P11.03 billion in the first half. It did not immediately release second quarter results.

Total revenues grew 11.5 percent to P37.22 billion. Interest income from loans grew 21.1 percent, BPI said in a statement.

Non-interest income fell 6.9 percent to P11.01 billion due to lower income from securities trading, trust and investment management and assets sales, the bank said.

Total loans grew 15.7 percent to P1.22 trillion while total deposits were up 7.2 percent to P1.53 trillion.

The bank said the higher documentary stamp tax resulted in a 17-point increase in the cost of funds.

Operating expenses rose 16.3 percent to P21.22 trillion due to "accelerated" spending on manpower and technology as the bank shifted to digital services, BPI said.