Higher provisioning for probable credit losses amid the COVID-19 pandemic trimmed Bank of the Philippine Islands (BPI)’s first quarter net profit by 5 percent year-on-year to P6.39 billion.
In a disclosure to the Philippine Stock Exchange on Thursday, BPI said it had booked P4.23 billion in provisions for loan losses in the first quarter as the COVID-19 pandemic ushered in a difficult period for consumers and businesses that could lead to potentially higher loan defaults.
The provision was 2.4 times more than the P1.8 billion buffer set aside during the same period in 2019.
For the first quarter, BPI’s total revenues increased by 10.9 percent to P25.26 billion. Net interest income grew by 13 percent to reach P18.14 billion.
Net interest margin was 3.63 percent, up by 24 basis points from the year-ago level as lower asset yields were offset by lower cost of funds.
Non-interest Income was P7.12 billion, up by 5.8 percent year-on-year, primarily from higher securities trading gains.
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