Bank of the Philippine Islands ended the first nine months with a record net income of P48.0 billion, up 24.3 percent, driven by robust revenue growth and sustained positive operating leverage.

Return on Equity was 15.9 percent and Return on Assets was 2.1 percent. Earnings per share for the first nine months stood at P9.10, up 16.5 percent from last year’s P7.81, notwithstanding the additional shares issued for the BPI and RBC merger.

Total revenues of P125.8 billion increased 24.7 percent from previous year, bolstered by the strong performance of net interest income which grew 22.2 percent to P93.8 billion.

Average loans expanded 18.9 percent and net interest margin widened 22 basis points to 4.29 percent.

Non-interest income rose 32.4 percent to P31.9 billion from securities trading gains of P3.0 billion while fee income also increased 28.0 percent year-on-year to P26.4 billion, attributable to higher service charges, credit card fees, and bancassurance income.

Operating expenses reached P59.4 billion, up 22.1 percent, on higher costs for manpower, transaction processing, and technology, leading to a Cost-to-Income ratio of 47.2 percent.

The bank recorded provisions of P4.8 billion, a 60.0 percent hike from last year.

On a sequential quarter-on-quarter basis, the NPL ratio increased only 10bps to 2.30 percent, with sufficient NPL coverage at 111.17 percent.

For the third quarter of the year, the bank posted its highest quarterly income to date of P17.4 billion, up 29.4 percent year-on-year, on the back of higher revenue growth of 26.3 percent to P44.6 billion.

Gross loans grew to P2.1 trillion, an 18.9 percent increase year-on-year, driven by consistent growth across all portfolios led by Personal Loans, up 103.3 percent, Business Banking, up 99.3 percent, and Microfinance, up 65.2 percent.

Total deposits stood at P2.5 trillion, up 14.5 percent year-on-year, with CASA Ratio at 63.0 percent and the Loan-to-Deposit Ratio at 85.9 percent.

Total assets stood at P3.2 trillion, up 17.2 percent year-on-year.

Total equity stood at P433.3 billion, with an indicative Common Equity Tier 1 Ratio of 14.8 percent and a Capital Adequacy Ratio of 15.5 percent, both above regulatory requirements.

To mark its 173rd Anniversary in August, BPI launched a transformative banking service which allows BPI account holders to deposit and withdraw cash at select Prince Stores and Prince Hypermart outlets, mostly located in areas where BPI branches are not present, marking a significant leap towards financial inclusion.

Also in August, BPI issued its largest thematic bond to date with the P33.7 billion 1.5 year Sustainable, Environmental, and Equitable Development (SEED) Bonds. The bond, which was more than six times oversubscribed, pays a coupon of 6.2 percent p.a.

In September, S&P Global Ratings affirmed its BBB+ rating with stable outlook for BPI, at par with the Philippine sovereign credit rating.

On the sustainability front, BPI set a new record high of 15 ESG-focused awards year to date from various reputable award-giving bodies such as Finance Asia, The Asset, and Global Finance. Most recently, BPI was recognized as the Sustainability Company of the Year at the 2024 Asia CEO Awards.

The Bangko Sentral ng Pilipinas (BSP) has collected more than P1 billion through its Coin Deposit Machines (CoDMs) as of 11 October 2024, just over a year since the project’s launch in June 2023. The total coin collection has reached P1,008,889.49.

Building on this success, the BSP will expand the project by installing 25 more CoDMs nationwide in 2025. This will make it more convenient for Filipinos to deposit their idle coins, helping recirculate them back into the economy while promoting cashless transactions. By increasing accessibility, the BSP aims to reach more communities and ensure that the benefits of the CoDM initiative are widely felt across all regions.

Since its launch, the CoDMs have accumulated more than 260,000 pieces of coins and facilitated almost 240,000 transactions.

These include the BSP Coin Series and the New Generation Currency Coin Series, composed of 1-, 5-, 10-, and 25-Sentimo; and 1-, 5-, 10-, and 20-Piso.

Through the CoDM, people can place legal tender coins1 in the machines, with the total value credited to e-wallet accounts in GCash or Maya, GoTyme bank accounts, or converted into shopping vouchers.

Alternatively, customers of SM Stores and Festival Mall may redeem the value of their deposited coins in the form of shopping vouchers that can be used in SM Stores nationwide.

In using the machines, the BSP reminds customers that coins must not be taped or bundled, must not come with other objects like buttons, magnets, nails, tokens, screws, or washers, and should be gently placed in the coin slot in handfuls.

Furthermore, the BSP advises customers to ensure their e-wallet accounts are valid, active, and within the prescribed transaction limits.

The BSP has so far installed CoDMs at the following locations: Robinsons Place Metro East, Pasig City; Robinsons Place Novaliches, Quezon City (QC); Robinsons Place Antipolo, Rizal; Robinsons Place Magnolia, QC; Robinsons Place Ermita, Manila; Robinsons Galleria, Ortigas; Festival Mall, Muntinlupa City; SM Megamall, Mandaluyong City; SM City Grand Central, Caloocan; SM City Marilao, Bulacan; SM City Taytay, Rizal; SM Hypermarket FTI, Taguig City; SM Southmall, Las Piñas City; SM City Sucat, Parañaque; SM City Calamba; SM City Marikina; SM City San Mateo, Rizal; SM City Valenzuela; SM Mall of Asia, Pasay City; SM City North EDSA, QC; SM City Fairview, QC; SM City San Lazaro, Manila; SM City Bicutan, Parañaque; and SM City Bacoor, Cavite.

EastWest, in partnership with various industry experts, held its latest economic briefing, delving into the evolving Philippine economic landscape and real estate trends.

The event, which took place recently in Quezon City, aimed to provide key insights into the current economic climate and its impact on various sectors, particularly real estate and finance.

“Given the rapid changes in the Philippine economic environment, particularly in the real estate sector, it is crucial to equip our clients and stakeholders with the knowledge needed to make informed and calculated decisions.  At EastWest, we continue to provide platforms like this to foster conversations that help shape business strategies and investment opportunities for our clients,” Richie Tamayo, SVP and head of Wealth Management at EastWest, said.

Titled “Exploring the Philippine Real Estate Landscape and Economic Trends,” the event featured an in-depth discussion led by two highly regarded experts in their fields.

Joey Bondoc, director of Research at Colliers Philippines, provided valuable insights into the real estate market, focusing on growth opportunities and challenges in the sector.

“The Philippine real estate landscape continues to evolve with the rising demand for office and residential spaces, driven by the growth in regional areas and the resilience of key sectors like outsourcing and tourism. As we move forward, it’s crucial to capitalize on the opportunities that these trends present, particularly in creating sustainable developments that cater to both the current market needs and future demands,” explained Bondoc.

Dr. Bernardo Villegas, renowned economist and professor, presented his analysis of the Philippine economy under the BBM administration, offering attendees a comprehensive understanding of the country’s economic trajectory.

“The Philippines continues to be one of the fastest-growing economies in the Asean region, despite global uncertainties. With a projected growth rate of over 6 percent in the coming years, we are poised to lead in economic resilience and transformation. The efforts of the current administration have laid a solid foundation for inclusive growth, with improvements in infrastructure, investments, and the digital economy that will further drive our trajectory upward. It is an exciting time for the Philippines as we harness our demographic dividend and geographic advantages to fuel sustained development,” Villegas shared.

Celebrating its 30th Anniversary, EastWest remains committed to going “Further for You” and fostering stronger relationships with its clients and partners by providing timely and relevant discussions on the economy.

This event is part of their ongoing efforts to equip stakeholders with the knowledge needed to make informed financial and investment decisions.

“We are excited to continue these discussions in more regions across the Philippines,” added Tamayo. “We look forward to more opportunities to bring together experts and stakeholders in dialogues that shape the future of the Philippine economy.”

EastWest is a subsidiary of Filinvest Development Corporation (FDC), one of the country’s leading conglomerates with a diverse range of interests, including real estate, banking, hospitality & tourism, infrastructure, power generation, and sugar. It is not affiliated with any foreign financial institution which may bear the same name. 

Asia United Bank (AUB) and its subsidiaries further improved their profitability in the first nine months of the year due to higher revenues and lower loan loss provisions.

The group posted another record-high P8.6 billion in consolidated net income, 41 percent more than the year-ago level and surpassing its full-year net income of P8.3 billion in 2023. This translated to a return on equity of 22.4 percent and return on assets of 3.4 percent, both higher than the previous year’s 19.4 percent and 2.5 percent, respectively.

Net interest margin rose 11 percent to P12.5 billion due to an increase in interest income from its loan portfolio and investment activities. Its net interest margin ratio was up 5.3 percent from the previous year’s 4.9 percent.

Non-interest income grew from improved foreign exchange gain, recovery income, and service charges and other fees from other operating activities such as credit cards, AUB PayMate, remittance, trust, and other branch-related transactions.

Operating expenses rose by 6 percent to P5.0 billion during the first three quarters, largely because of higher staff compensation and capital expenditures as AUB focused on new business growth opportunities.

Credit and impairment losses plunged by 93 percent from P1.1 billion a year ago, as credit quality improved. 

The bank posted a nonperforming loans (NPL) ratio of 0.53 percent from the previous year’s 0.7 percent. It remains sufficiently covered from probable losses with an NPL coverage ratio of 120.7 percent versus the previous year’s 107.0 percent.

Rizal Commercial Banking Corporation (RCBC) is drawing more Filipino investors–particularly seniors and self-employed individuals–to its green time deposit (GTD) product, reflecting their commitment to both financial growth and environmental sustainability.

Bank data revealed that 35 percent percent of depositors in the GTD are retired individuals, while 21.9 percent comprised self-employed professionals. Furthermore, seniors, aged 60 and above, make up 30.8 percent of the total individual GTD depositors, while mature married individuals contribute another 31.1 percent.

The unique time deposit product also appeals to younger and environmentally-conscious segments, with 11.1 percent of depositors categorized as young singles, further emphasizing the shift in investor preferences towards green finance solutions.

“Our green time deposit product offers a unique value proposition–it allows our clients to grow their wealth while helping fund projects that support clean energy, waste reduction, and other environmentally responsible initiatives. Investors are now more conscious than ever about where their money goes and the kind of world they want to build,” RCBC’s Chief Sustainability Officer Armi Lamberte said.

Philippine National Bank (PNB) has successfully tapped into international markets with a $300 million benchmark-sized Sustainability Regulation S offering of 5-year senior notes under its $2 billion Euro Medium Term Note programme.

PNB conducted a two-day roadshow starting on October 14, 2024 to engage with potential investors. The 5-year bond was priced at T+102 basis points, with a fixed coupon rate of 4.85 percent. The offering was met with strong demand, as the final order book was more than 3.6x oversubscribed, reaching $1.1 billion from global investors.

Moody’s has assigned an investment grade rating of Baa3 to the 5-year bond.

In terms of geographical distribution, 89 percent of the investors were from the Asia Pacific (APAC) region, while 11 percent were from Europe, the Middle East, and Africa (EMEA).

By investor type, 67 percent were asset managers and hedge funds, 23 percent were banks, and the remaining 10 percent were private banks, broker dealers and others.

“We believe this is an ideal time to return to the market, given the reduction in interest rates complemented by the bank’s improved core banking activities. We have already enhanced our banking operations and processes to support continuous growth as we expect our business to further strengthen in the future,” said Francis Albalate, Chief Financial Officer of PNB.

ING announced the appointment of Uday Sareen as chief executive and head of Wholesale Banking for Asia Pacific.

In this role, Uday will oversee operations across 11 markets in the region, leveraging his extensive expertise and leadership to drive growth and innovation.

With a banking career spanning three decades across Asia Pacific & Europe, the Middle East and Africa, Uday has a deep understanding of customer needs and a wealth of experience in managing segments and products across geographies, which will help grow the difference in the region for our wholesale banking clients.

Uday joined ING in 2007 in India. Since 2020, he has been the head of Wholesale Banking at ING for the EMEA (Europe, the Middle-East & Africa) region, prior to which he was the country manager for ING in Australia.

“Uday’s extensive experience in wholesale and retail banking, along with his understanding of the Asia Pacific market, will be invaluable as we continue to grow our business in the region, leveraging our global network and sector expertise to create better value for our clients,” Andrew Bester, head of ING Wholesale Banking, said.

Uday holds an MBA from the Faculty of Management Studies, University of Delhi, India in addition to a Bachelor of Engineering (Hons) Electrical & Electronics & a Master of Science (Hons) Economics from the Birla Institute of Technology & Science (BITS Pilani), India.

Alipay+, Ant International’s cross-border mobile payment and digitalization solution, revealed three trends shaping the future of tourism to the benefit of global merchants and the industry.

“Tourism’s importance to economic growth makes it essential for the industry to pursue innovation and new partnerships so that more people can benefit,” said Douglas Feagin, President of Ant International.

“Our Alipay+ solution has evolved to include cross-border payments, destination marketing and digital lifestyle services, and we have seen significant adoption as more consumers embrace technology to enhance their travel experience. We believe in a collaborative open approach and will work closely with partners across the industry towards a new future of travel.”

Alipay+ enables travelers to use their familiar home payment app when going abroad.An expanding merchant coverage and a strong travel recovery, Alipay+ has seen a surge in transactions globally. By using Alipay+, cross-border travelers can experience a new country or market and pay like a local.

Alipay for Chinese consumers — and an Alipay+ partner — has been accepted by global merchants starting from 2015, and continues to see steady growth in global transactions.

Alipay+’s mobile payment partners from around the world have also seen significant growth. In the first nine months of 2024, the number of people using an Alipay+ payment partner apps while abroadincreased by three times, and the number of transactions increased by more than three times.

As of October 2024, Alipay+ has more than 30 payment partners, including leading e-wallets and bank apps from Asia and beyond, with 1.6 billion consumers, connecting consumers to more than 90 million merchants in 66 markets.