Bank Of The Philippine Islands · PSE:BPI
Bank Of The Philippine Islands — FY2024 Earnings Presentation
21 slides from Bank Of The Philippine Islands's earnings presentation, February 2025
Slide 1: BPI Investor Presentation 4Q and FY 2024
BPI Investor Presentation 4Q and FY 2024
Slide 2: Performance Highlights
Performance Highlights • Record full year net income of P62.05 Bn, up 20.0%, driven by record revenues and improved efficiency • 4Q income of P14.06 Bn, down 19.3% on the sequential quarter, largely from higher expenses and reduced Profitability trading income • Sustained strong profitability with f
Slide 3: Profitability – Quarter
Profitability – Quarter Quarter-on-Quarter In P bn 4Q24 net income at P14.06 Bn, down 19.3% QoQ, 4Q 2023 3Q 2024 4Q 2024 QoQ YoY on an increase in operating expenses. Net Interest Income 27.57 32.59 33.74 3.5% 22.4% • Revenues were relatively flat - decline in Non-Interest Income 9.87 11.99 10.64 -1
Slide 4: Profitability – Full Year
Profitability – Full Year In P bn 2022 2023 2024 YoY Third consecutive year of strong income growth driven Net Interest Income 85.07 104.35 127.59 22.3% by revenues Non-Interest Income 33.46 33.97 42.55 25.3% Record net income of P62.05 Bn, up 20%, largely due Trading Income 1.07 1.92 3.30 71.8% to
Slide 5: Shareholder Returns
Shareholder Returns Earnings per Share* Return on Assets 1.98% 1.93% 1.59% 1.38% +12.3% 11.78 1.08% 0.98% 10.49 +30.3% 8.05 2019 2020 2021 2022 2023 2024 5.86 +65.8% 4.85 Return on Equity 4.35 15.35% 15.07% 13.14% 10.97% 8.40% 7.70% 2019 2020 2021 2022 2023 2024 *(1) weighted number of shares used i
Slide 6: Balance Sheet
Balance Sheet • Strongest loan growth since 2016; organic loan growth trending ahead of industry average • Managed deposit growth as borrowings increasingly become an efficient source of funding; 86% of deposits growth from retail & SME/Microfinance • Decline in CASA ratio in line with industry; LDR
Slide 7: Loans by Segment
Loans by Segment • Sharp growth in all segments, led by non-institutional portfolios which collectively increased 42% • Non-institutional portfolio accounts for 27.7% of the loan mix, up 460 bps from last year TOTAL GROSS LOANS INSTITUTIONAL NON-INSTITUTIONAL 2,287 1,653 ₱2,287B 1,935 ₱1,653B 1,488
Slide 8: NIM
NIM Improvement in NIM from • Sustained shift in loan mix towards non-institutional segments • Managed deposit growth • Moderate shift in funding source to borrowings from time deposits • Improvement in loan to deposit ratio and loan to total funding ratio • RRR reductions Annual NIM Quarter NIM YoY
Slide 9: Funding
Funding • Pivoted to borrowings as a source of funding, leveraging on the strength of the BPI's credit rating and on incentives for sustainable financing • Oversubscription and spread of recent bond issuances reflective of strength of BPI's balance sheet • Refinancing of upcoming maturity bodes well
Slide 10: Fee Income
Fee Income • Fee income growing consistently year-on-year • Sustained strong broad-based growth across fee income segments • Fee income performance was led by our biggest businesses: cards, wealth management, and insurance YoY Growth Ranked by Contribution to FY 2024 Fee Income* Amounts in P bn +24.
Slide 11: NPL and Credit Coverage Ratios
NPL and Credit Coverage Ratios NPL LEVEL (in ₱ Bn) NPL RATIO NPL COVER -0.4B -0.9% vs. Last Quarter -17bps vs. Last Quarter -495bps vs. Last Quarter ₱48.4B 2.13% 29bps 106.22% -50ppts 12.9B +36.5% vs. Last Year vs. Last Year vs. Last Year 48.4 180.07% 2.13% 155.47% 35.4 1.84% 30.9 1.76% 106.22% SEP
Slide 12: NPL Ratio and Cover per Segment
NPL Ratio and Cover per Segment • NPL ratio for Mortgage, Auto, Business Bank and Microfinance portfolios at lowest in three years despite the 50% to 250% volume growth TOTAL INSTITUTIONAL NON-INSTITUTIONAL 2.13% 2.50% 1.29% 4.46% 6.71% As of December 2024 1.19% 1.29% 4.71% 2.09% 2.13% 4.89% -17bps
Slide 13: Operating Expenses
Operating Expenses Amounts in P bn 2019 2020 2021 2022 2023 2024 YoY 1 83.8 Total Cost-to-Income 52.4% 47.3% 52.1% 48.9% 50.0% 49.3% +21.3% Customer Count (in mn) 8.66 8.57 8.46 9.31 11.58 16.0 69.1 Manpower Headcount 21,429 19,952 19,181 18,201 19,522 22,602 28.9 +24.6% 58.0 Distribution Channels 5
Slide 14: Capital
Capital • CET1 capital increased from income accretion and additional shares issued for the merger, partly offset by capital distribution • CET1 capital ratio declined largely from increase in credit RWA, reflecting strong loans growth and change in loan mix • Ratios comfortably above internal and r
Slide 15: Capital Distribution
Capital Distribution Dividend per Share Dividend Payout vs 2021 +17.9% 3.96 +120% 3.36 1.98 40.1% 40.2% 40.4% 37.9% 1.68 2.12 1.8 1.8 28.2% 1.06 0.9 0.9 1.98 1.68 0.9 0.9 1.06 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Payout Ratio = Cash Dividends Declared/Previous Year’s Income First Semest
Slide 16: 2024 Institutional Awards
2024 INSTITUTIONAL AWARDS BEST SME BANK IN THE PHILIPPINES BEST BANK IN THE PHILIPPINES GOLD AWARD FOR BEST BEST DCM HOUSE FOR 11TH TIME IN 18 YEARS CUSTOMER EXPERIENCE 18TH ANNUAL ALPHA SOUTHEAST FINANCEASIA AWARDS 2024 ASIA BEST FINANCIAL INSTITUTION FINANCEASIA AWARDS 2024 CX ASIA EXCELLENCE AWAR
Slide 17: 2024 Institutional Awards
2024 INSTITUTIONAL AWARDS PHILIPPINES’ CASH BEST EQUITY DEAL BEST CORPORATE BOND BEST ACQUISITION FINANCING MANAGEMENT MARKET LEADER FOR BPI CAPITAL FOR BPI CAPITAL FOR BPI CAPITAL FOR 2ND WIN THE ASSET TRIPLE A SUSTAINABLE THE ASSET TRIPLE A SUSTAINABLE THE ASSET TRIPLE A SUSTAINABLE ASIAMONEY FINA
Slide 18: 2024 ESG Awards
2024 ESG AWARDS Record high of 18 ESG-focused awards and recognitions received in 2024 FINANCE-RELATED AWARDS BEST SUSTAINABLE BANK IN BIGGEST ESG IMPACT IN THE BEST BANK FOR SUSTAINING SUSTAINABLE FINANCE AWARDS EXCELLENCE AWARD THE PHILIPPINES PHILIPPINES COMMUNITIES WINNER FOR THE PHILIPPINES FOR
Slide 19: Summary
Summary 1 Profitability: Improved profitability with record income led by revenue Balance Sheet: Strong loan growth across all segments; liquidity and capital positions remain 2 above regulatory thresholds 3 Asset Quality: Strong asset quality with sufficient allowance 4 Shareholder Returns: Sustain
Slide 20: For your comments and queries contact us
For your comments and queries contact us via: investorrelations@bpi.com.ph Tel: (632) 8663 6729 https://www.bpi.com.ph/ Scan the QR code to download the 2023 Integrated Report or visit https://www.bpi.com.ph/about-bpi/investor-relations/integrated- reports
Slide 21: Important Information
Important Information DISCLAIMER: This presentation has been prepared by the Bank of the Philippine You may also reach out to BPI's Islands (“BPI” or the “Company”) solely for informational purposes. All contents complaints handling unit for other hereof are the sole and exclusive property of BPI. N
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