BANK of Commerce (BankCom) posted a higher net profit in the first quarter, driven by continued growth in its revenues, it reported on Wednesday.
The bank’s net income stood at P769.18 million in the January-to- March period, up by 7.89% from P712.9 million in the same period last year, it said in a disclosure to the stock exchange.
This resulted in a return on equity of 9.87% and a return on assets of 1.33%.
“The bank’s continued profitability was driven by steady growth in its core business, specifically net interest income, alongside an increase in non-interest income,” the bank said in a statement.
Gross revenues rose by 17% year on year to P2.65 billion from P2.27 billion.
“BankCom’s strong revenue growth was driven by higher net interest income and service charges, fees, and commissions,” the bank said.
Net interest income grew by 16.55% to P2.25 billion from P1.93 billion in the prior year, driven by the steady expansion in its lending and financial assets.
Net interest margin stood at 4.46%, up from 4.28% last year.
Other income rose by 17% to P398.34 million from P340.98 million on the back of service charges, fees, and commissions, and real and other properties acquired-related gains, BankCom said.
Service charges, fees, and commissions stood at P250.91 million, driven by investment banking, credit card, and trust fees. BankCom’s investment banking arm contributed P69.55 million or 28% to total earnings from service charges, fees, and commissions.
“In addition, gains on the foreclosure and sale of property and equipment and foreclosed assets increased more than two times to P79.60 million,” the bank said.
BankCom’s total operating income rose by 16.59% to P2.65 billion from P2.27 billion.
Operating expenses, excluding provisions for credit and impairment losses, went up by 18% to P1.61 billion from the P1.36 billion last year.
This resulted in a cost-to-income ratio of 61%.
The bank set aside P28.65 million in provisions for credit and impairment losses during the first quarter.
Meanwhile, total loans and receivables rose by 7.42% to P117.69 billion from P109.57 billion at end-2023.
Its gross nonperforming loan (NPL) and net NPL ratios stood at 1.47% and 0.37%, respectively, as of March.
On the funding side, deposit liabilities inched up by 0.08% to P186.05 billion from P185.91 billion.
As a result, its loan-to-deposit ratio was at 69%.
BankCom’s assets stood at P231.75 billion at end-March.
Total capital was at P31.5 billion. Its capital adequacy ratio stood at 18.64%.
The bank’s shares went down by 5 centavos or 0.75% to end at P6.80 apiece on Wednesday. — A.M.C. Sy
