ROBINSONS BANK Corp. reported lower net income in the first quarter, dragged by higher operating costs amid its expansion.
In a report posted on the Philippine Dealing System website, the Gokongwei-led bank said it booked a P40.07-million net profit in the first three months of the year, plunging 56.2% from the P121.57 million recorded in the same quarter last year.
The bank attributed the slump in its bottom line to higher operating expenses, which stood at P952.57 million, 19.9% higher from the P795.14 million recorded in the comparable year-ago period.
“The significant increases in compensation and fringe benefits; taxes and licenses expense; and occupancy and equipment-related costs…are mainly attributable to business expansion activities,” the bank said.
Apart from this, the bank’s interest expense surged 85.2% to P838.35 million last quarter from the P452.71 million seen in the first three months of 2018.
Meanwhile, the slump in Robinsons Bank’s net income was tempered by its net interest earnings, which came in at P889.96 million in the January-March period, up 6% from P839.27 million a year ago.
This was bolstered by the 40.3% growth in interest earnings on loan and receivables at P1.4 billion from P997.65 million in the same quarter in 2018.
Total loans stood at P70.47 billion at end-March from P68.41 billion at end-2018.
Non-performing loans (NPL) ratio stood at 1.1% as of March, with the bank’s NPL cover at 32.54%.
On the funding side, the lender’s total deposit liabilities slid 2% to P93.12 billion in the quarter from P95.01 billion in the same period last year.
Net interest margin was at 3.14%.
Meanwhile, Robinsons Bank’s income from service fees and commissions stood at P92.75 million last quarter, more than double the P35.67 million booked in the same period in 2018.
Overall, the lender’s total assets were at P121.48 billion at end-March from P121.35 billion as of end-2018.
Robinsons Bank wants to double its net income this year to reach P756 million from the actual P317.11 million booked in 2018.
Robinsons Bank President and Chief Executive Officer Elfren Antonio S. Sarte said the expansion in the lender’s full-year earnings will be driven by growth in its interest and fee incomes. — Karl Angelo N. Vidal