Bank of Commerce (BankCom), an affiliate of diversified conglomerate San Miguel Corporation, reported a 13 percent growth in net income to ₱866.79 million in the first quarter of 2025.
In a disclosure to the Philippine Stock Exchange, the bank said it delivered growth across various revenue streams: net interest income, trading securities and foreign exchange gains.
“The first quarter results showcase the Bank’s sustained momentum and robust performance of its core businesses. The revenue growth translated to a return on equity (ROE) of 10.27 percent, reflecting the continued execution of strategies to optimize the use of capital,” it said.
Gross revenue growth was mainly due to higher net interest income, trading securities and foreign exchange gains, as well as ROPA (real and other properties acquired) related gains.
Net interest income posted ₱2.49 billion, up 11 percent from the ₱2.25 billion in the prior year on account of expansion across all segments of lending, mainly on the corporate aspect focused on the client rich SMC ecosystem.
The bank said its targeted asset deployment and prudent management of funding translated to a net interest margin (NIM) of 4.24 percent.
Other income grew significantly by 26 percent from ₱398.34 million in the same period in 2024 to ₱503.09 million primarily due to favorable securities trading, foreign exchange gains and ROPA related revenues. The Bank was also able to generate higher trust, credit card and trade finance fees.
BankCom remained to be conservative in its provisioning for credit and impairment losses with a non-performing loans coverage ratio of 92.34 percent.
Operating expenses, excluding provision for credit and impairment losses expanded by 11 percent to ₱1.79 billion, consistent with the Bank’s efforts to broaden its market share.
Notwithstanding the rise, the cost-to-income ratio was pegged at 60 percent, evident of Bank’s operational efficiency amid revenue expansion.
Operating expenses rose on the back of the continued investment in human capital and technology as well as a higher volume of operational transactions.
Total assets stood at ₱257.08 billion, translating to return on assets of 1.33 percent. Total loans and receivables which represent more than 50 percent of the total assets, increased to ₱138.74 billion, ₱2.24 billion or 1.64 percent up from last year.
The sustained growth was driven by the expansion in the lending business and resulted to a loan-to-deposit ratio (LDR) of 74 percent. Gross non-performing loans (NPL) and net NPL ratios were at 1.35 percent and 0.50 percent respectively, industry lows.
Total deposits amounted to ₱188.89 billion. Broken down, total deposits comprised ₱167.58 billion current account and savings account (CASA), ₱16.28 billion time deposits, and ₱5.03 billion long-term negotiable
certificate of deposit (LTNCD).
