Bank of Commerce net income up 85% in 2016
THE Bank of Commerce (BanCom) saw its bottom line soar by more than half last year primarily driven by its robust core businesses, with the bank projecting to double its consumer loans for 2017.
In its 2016 annual report published on its Web site, the lender reported its net income stood at P610 million in 2016, surging by 85% from the P330 million booked in 2015.
“The last five years saw the Bank’s continuing profitability as Bank of Commerce accumulated P3.6 billion in audited net income from year 2012 to year 2016, of which P610.4 million was earned during the year 2016, which is an 85.09% growth from the 2015 net income of P329.8 million. ROE (return on equity) increased to 3.5% in 2016, from 1.9% in 2015. Earnings per share likewise increased to P5.44 in 2016, from P2.94 in 2015,” BanCom stated.
“Underlying this is the growth in the bank’s core businesses, the effectiveness of managing the cost of intermediation, and constant revisit of the cost of operations,” it added.
Meanwhile, its net loans and receivables by end-2016 also rose 18.4% year-on-year to P49.8 billion, bulk of which were consumer loans, which went up 35.4% year-on-year.
Its consumer and credit loans accounted for 14.91% of its total loan portfolio at end-2016 from the 13.04% seen in 2015.
“Consumer loans are further expected to double in 2017, as branches become more proactive in account origination. The roster of corporate accounts increased in tandem with the middle market segment.”
“The bank will further focus on increasing consumer loans for 2017, fuelled by a more efficient and decentralized backroom, diversified yet balanced distribution channels, and a more aggressive sales team in the head office,” it added.
Meanwhile, BanCom’s net interest income reached P863.3 billion, up from 2015’s P847.2 billion.
For this year, the bank also sees its deposit production expanding after it opened new branches in provincial areas in the second semester of 2016.
As of end-2016, BanCom had a total branching network of 132 and 262 automated teller machines situated across the country. — JMDS
