BANK of Commerce (BankCom) saw its net income rise by 53% in the second quarter on the back of double-digit increases in both its net interest and non-interest earnings.
BankCom’s net profit went up to P993.91 million in the three months through June from P649.30 million in the same period in 2024, it said in a disclosure to the stock exchange on Thursday.
For the first semester, its net earnings jumped by 31% year on year to P1.86 billion from P1.42 billion driven by strong revenue growth as its core businesses remained robust.
This translated to a return on equity and return on assets of 11% and 1.39%, respectively, up from 9.12% and 1.23% a year ago.
“The robust performance was underpinned by sustained growth across core revenue streams, driven by net interest income, gains from trading securities, and foreign exchange transactions,” BankCom said.
“BankCom’s strong financial results underscore its strategic focus on growth, operational efficiency, and prudent risk management.”
The bank’s net interest income rose 16% to P2.66 billion in the second quarter from P2.28 billion the prior year as its interest earnings rose while its interest expense declined.
Its net interest margin was at 4.27%, down from 4.53% a year prior.
Non-interest income surged 36% to P409.43 million from P300.03 million, driven by higher service charges, fees and commissions and improved foreign exchange gains.
Meanwhile, operating expenses edged up to P1.76 billion from P1.72 billion.
“The bank’s strategy of improving its revenue streams and prudent spending resulted in a lower cost-to-income ratio of 59%,” it said. At end-June 2024, its cost-to-income ratio was at 62%.
BankCom’s total loans and receivables grew by 5% to P143.58 billion at end-June from P136.51 billion at end-2024.
Its gross nonperforming loan (NPL) ratio was at 1.34%, while its net NPL ratio stood at 0.53%. Its NPL cover was at 86.96%.
Meanwhile, total deposits were “moderately lower,” dropping by 4% to P203.82 billion as of June from P212.01 billion at end-2024 “due to seasonality in the use of larger business accounts,” BankCom said.
“The deposit mix includes ₽185.39 billion in current account and savings account deposits, P13.40 billion in time deposits, and P5.03 billion in long-term negotiable certificates of deposit.”
This resulted in a loans-to-deposit ratio of 71%.
BankCom’s assets stood at P271.53 billion as of June, while capital funds were at P34.46 billion.
Its capital adequacy ratio was at 17.30% at end-June, down from 17.58% at end-2024 but still well above the regulatory minimum of 10%.
BankCom’s shares closed unchanged at P7.22 each on Thursday. – BVR
