BANK of the Philippine Islands (BPI) on Friday said that its net income grew by 30.5 percent last year to P51.7 billion from 2022's P39.6 billion, driven by higher revenues and lower provisions that offset increased operating costs.

Excluding the impact of a one-off gain from a property sale in 2022, the Ayala-led bank said income growth in 2023 would have been 44.1 percent higher compared to the previous year.

For the fourth quarter alone, net income surged 44.3 percent year-on-year to P13.1 billion on strong revenue growth and lower provisions recognized.

"The bank's solid financial performance is a reflection of its strengthened customer franchise and deeper customer engagement, which led to record volumes and market share gains in several businesses," BPI said in a statement.

Consolidated revenues rose 16.7 percent year-on-year to P138.3 billion on the back of a 22.7-percent increase in net interest income to P104.4 billion.

Noninterest income rose 1.5 percent year-on-year to P34 billion, driven by "record trading income gains of P5.2 billion, up 37 percent year-on-year," the bank said.

Fee income, however, slipped by 3.0 percent to P28.8 billion. Stripping off the impact of the 2022 one-off gain, fee income was up by P4.1 billion or 16.6 percent, on higher fees from credit cards, service charges, and bancassurance, BPI added.

Provisions were trimmed by 56.4 percent to P4.0 billion as asset quality continued to be strong. The bank's nonperforming loan (NPL) ratio was at 1.84 percent, with NPL coverage at 156.1 percent.

Total loans during the year increased by 10.5 percent to P1.9 trillion on brisk growth across all portfolios. Total deposits rose 9.5 percent to P2.3 trillion, mainly from growth in time deposits, which tempered the decline in CASA, or current account savings accounts, the bank said.

On the other hand, it said operating expenses widened by 19.2 percent year-on-year to P69.1 billion on higher manpower, technology, and marketing costs.

The bank said it closed 2023 with strong return on equity and return on asset ratios of 15.35 percent and 1.93 percent, respectively.

Total assets as of end-December last year stood at P2.9 trillion, while total equity amounted to P357.2 billion, the Ayala-led bank added.

Following its merger with Gokongwei-owned Robinsons Bank Corp., which took effect last January 1, BPI expressed optimism that the deal would "expand reach and enrich the overall banking experience of its customers by unlocking synergies within the BPI Group and Gokongwei ecosystems."

BPI shares on Friday ended up 3.2 percent at P116.10 each amid a 1.27-percent advance in the benchmark Philippine Stock Exchange index.

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