BANK of Commerce’s (BankCom) net income more than doubled in the second quarter amid strong results across the lender’s core businesses, it said in a filing with the local bourse on Monday.
BankCom’s net income for the April to June period was at P526.31 million, surging by 232.9% from the P158.03 million it posted in the same period last year.
This brought its net profit for the first half to P886.91 million, 191% higher than the P304.37 million seen in the comparable year-ago period.
This was “mainly brought about by higher interest income, an increase in fees and commissions and lower credit provisioning expenses,” BankCom said.
This translated to a return on average equity of 7.05%, up from the 3.6% recorded in the first half of 2021. Return on average assets also rose to 0.87% from 0.34% a year prior, BankCom’s quarterly report showed.
BankCom’s net interest income in the second quarter stood at P1.62 billion, up from P1.23 billion last year.
Meanwhile, its other income was at P311.81 million in the second quarter, also higher than the P233.37 million seen in the same period last year.
On the other hand, expenses went up to P1.25 billion from P1.198 billion in the comparable year-ago period.
BankCom’s assets rose 3.78% year-on-year to P207.25 billion at end-June, which it attributed to the increase in its loans.
Its loans went up to P100.85 billion as of June amid higher corporate credit.
The bank said its the growth of its non-performing loans (NPL) remained “manageable” as its gross NPL ratio declined to 2.63% at end-June from 3.09% at end-December 2021.
Meanwhile, its deposit liabilities were at P175.06 billion as of June.
The lender’s capital funds stood at P26.98 billion at end-June. Its capital adequacy ratio was at 17.85% as of June, down from the 21.57% recorded at end-2021, while its common equity Tier 1 ratio stood at 13.38%.
BankCom shares closed at P9.43 apiece on Monday, up by 99 centavos or 11.73%. — D.G.C. Robles