A surge in core business performance and strategic gains in trading and foreign exchange propelled BankCom to a remarkable 17% increase in net profit last year. The financial institution reported a net income of P3.54 billion, a significant climb from the P3.02 billion recorded in the previous year.
While the final quarter of the year saw a slight dip in earnings – down 2% to P794.79 million compared to P813.08 million in 2024 – the overall annual performance painted a picture of robust growth. This success translated into impressive returns, with a return on equity reaching 10.14% and a return on assets of 1.28%.
The bank attributed its revenue expansion to consistent growth in its core operations, coupled with astute income generation from trading and foreign exchange activities. Gross revenues climbed to P12.61 billion, a substantial 17% increase from the P10.76 billion reported the year before.
A key driver of this success was a notable 18% year-on-year increase in net interest income, reaching P10.78 billion. This growth was fueled by expansions in loans, receivables, investment securities, and financial assets valued at fair market prices.
BankCom maintained a healthy net interest margin of 4.35%, achieved through a strategic balance of revenue growth from earning assets and careful management of interest-bearing liabilities. This demonstrates a keen focus on profitability and efficient financial management.
Beyond interest income, the bank also experienced an 11% rise in other income, reaching P1.83 billion. This was largely due to strong trading gains and a growing client base in foreign exchange transactions, indicating successful diversification of revenue streams.
Despite increased investments in its workforce and technology – driving a corresponding 11% rise in operating expenses to P7.42 billion – BankCom managed to improve its cost-to-income ratio, lowering it from 62% to 59%. This highlights effective cost management alongside strategic investments.
The bank prudently allocated P382.2 million towards provisions for credit and impairment losses, demonstrating a commitment to financial stability and risk management. This proactive approach safeguards against potential future losses.
Total loans and receivables experienced a significant 19% year-on-year increase, reaching P162.82 billion, with growth observed across all business segments. Loans now constitute 57% of the bank’s total assets, signifying a strong lending portfolio.
Maintaining asset quality remained a priority, with gross nonperforming loan ratios at 1.33% and net NPL ratios at 0.62%. These figures indicate a healthy loan portfolio and effective credit risk management.
On the funding side, total deposits grew by 5% to P223.31 billion, with the majority – P198.49 billion – held in current and savings accounts. Time deposits accounted for the remaining P24.83 billion, resulting in a loan-to-deposit ratio of 75%.
BankCom’s total assets reached P286.85 billion by the end of the year, an 8% increase year-on-year. This growth was underpinned by a 10% rise in total capital, reaching P36.58 billion, fueled by strong financial performance and reinvestment of earnings.
The bank’s capital adequacy ratio stood at a robust 16.48%, exceeding regulatory requirements and demonstrating a strong financial foundation. This provides a buffer for future growth and potential economic challenges.
Reflecting investor confidence, BankCom’s shares closed at P9.25 apiece, marking a 2.78% increase – a gain of 25 centavos – on Wednesday. This positive market response underscores the bank’s successful performance and promising outlook.
