Bank of Commerce (BankCom), a San Miguel Corporation affiliate, reported a record net income of ₽1.8 billion for the fiscal year that ended on December 31, 2022. This marks a 49% increase from last year’s ₽1.2 billion, which is the highest since the acquisition of SMC.
BankCom had a successful year as it raised P3.37 billion of common stock capital through an IPO and listed on the Philippine Stock Exchange. It also raised its maiden issuance of P7.5 billion bonds and was officially granted a universal banking license.
In FY2022, BankCom’s gross revenue increased by 30% to ₽8.12 billion, and net interest income surged to ₽6.68 billion, representing a 24% increase from the previous year. Fee income increased by 74%, amounting to ₽1.43 billion.
The bank’s total loans and receivables surpassed ₽100 billion to reach ₽105.1 billion, a 41% increase from last year. Investment securities increased by 19% to ₽58.39 billion. The total capital base stood at ₽28.03 billion, 20% higher than the previous year, which translates to a capital adequacy ratio (CAR) of 17.97%, higher than the minimum regulatory requirement.
BankCom had several successful events in 2022, including its stock market debut following an initial public offering consisting of 280.60 million common shares at ₽12 per share. It also completed its first investment banking transaction as a selling agent of the ₽40 billion bond issuance to San Miguel Global Power Holdings Corporation, which is one of the largest deals in the country.
In addition, it successfully listed its maiden issuance of ₽7.5 billion 2-year bonds, and on November 2, 2022, it was granted the authority to operate as a universal bank.
In the fourth quarter of 2022, BankCom’s net income amounted to ₽311.58 million, bringing the full-year net income to ₽1.8 billion. Gross revenue increased by 6% to ₽2.29 billion, and net interest income grew to ₽1.86 billion, a 32% increase from the same quarter last year.
BankCom’s balance sheet shows that its total assets stood at ₽217.52 billion, a 9% increase from last year, with a return on assets (ROA) of 0.86%. Its total loans and receivables surpassed ₽100 billion to reach ₽105.09 billion, a 41% increase from the same period last year.
The bank’s capital base stood at ₽28.03 billion, a 20% increase from last year, with a return on equity (ROE) of 7.01%. The bank’s Tier 1 and CAR stood strong at 17.22% and 17.97%, respectively, which is well above the minimum regulatory requirement. The net non-performing loan ratio at the end of 2022 was 0.60%, reflecting improving asset quality.
Overall, BankCom had a successful year with significant increases in net income, gross revenue, and net interest income, among others. The bank’s successful IPO, bond issuance, and attainment of a universal banking license are expected to support its growth in the coming years. – BusinessNewsAsia.com