BANK of Commerce (BankCom), an affiliate of San Miguel Corp., said Tuesday that it delivered a "record" net income of P2.8 billion last year, the highest since 2008 and up 56 percent from 2022's P1.8 billion.

The growth was said to be anchored on improvements in the core lending business, translating to a return on equity of 9.52 percent — higher than the 7.01 percent registered a year earlier.

Total revenues also grew, by 23 percent to P9.98 billion from P8.12 billion, fueled by the sustained growth in net interest income and other banking businesses.

Net interest income climbed by 24 percent to P8.3 billion from P6.68 billion in 2022, which was attributed to strong gains from loans and receivables as well as investment securities due to higher yields.

Other income, meanwhile, rose 17 percent to P1.68 billion from P1.43 billion on the back of higher service charges, fees and commissions.

In the fourth quarter alone, the bank's earnings more than doubled to P791.1 million from P311.58 million, due to increased revenues from lending, investment securities and fees.

BankCom said that by the end of 2023, its total assets had reached P231.67 billion following the expansion in loans and investment securities.

Total loans and receivables were said to have increased to P109.57 billion, mainly driven by higher corporate loans and resulted in a loan-to-deposit ratio of 70 percent.

Asset quality remained strong, with the net nonperforming loan (NPL) ratio settling at 0.44 percent, while the gross NPL ratio was better than the industry average at 1.54 percent.

Deposits, which accounted for 80 percent of total assets, rose to P185.91 billion, backed by a 7.0-percent growth in CASA, or current account savings account.

Key capital ratios — common equity tier 1 of 19.09 percent and capital adequacy of 19.88 percent — closed above the minimum regulatory requirements.

The bank's shares declined by 27 centavos to P6.22 each on Tuesday while San Miguel's share price dropped by P1.60 to P101.40.