BANKCOM.COM.PH

BANK of Commerce’s (BankCom) net income climbed by 7.95% year on year in 2024, as strong loan growth boosted its interest earnings.

The San-Miguel Corp.-led bank’s net profit stood rose to P3.02 billion last year from P2.8 billion in 2023, its financial statement disclosed to the stock exchange on Wednesday showed.

This translated to a return on equity of 9.44% and a return on assets of 1.22% last year, down from 9.52% and 1.25%, respectively.

Net interest income increased by 9.82% to P9.11 billion from P8.296 billion amid higher loans. Interest income grew by 11.91% to P13.16 billion from P11.76 billion, while interest expense rose by 16.93% to P4.05 billion from P3.47 billion.

Net interest margin was at 4.17%, down from 4.28%.

This led its total operating income to rise to P10.76 billion last year from P9.98 billion in 2023, with earnings from service charges, fees and commissions at P1.07 billion, up from P886.38 million a year prior.

Meanwhile, BankCom’s operating expenses climbed by 9.21% to P6.81 billion last year from P6.24 billion in 2023.

The bank set aside loan loss provisions of P139.41 million last year, up by 76.82% from P78.84 million.

This resulted in a cost-to-income ratio of 62%.

The bank’s total loans expanded by 24.59% to P136.51 billion at end-2024 from P109.57 billion in the previous year.

Its nonperforming loan (NPL) ratio was at 1.25%, while NPL cover was at 97.47%.

On the funding side, total deposits rose by 14.04% to P212.01 billion from P185.91 billion.

As a result, BankCom’s loan-to-deposit ratio stood at 0.64% in 2024.

The bank’s total assets expanded by 14.58% year on year to P265.44 billion at end-2024 from P231.68 billion.

Total equity also increased by 7.71% to P33.23 billion.

The bank’s capital adequacy ratio stood at 17.58% last year while common equity Tier 1 ratio was at 13.75%, down from 19.88% and 15.32%, respectively.

BankCom’s shares rose by nine centavos or 1.28% to close at P7.10 each on Wednesday. — A.M.C. Sy