BPI first half profit up 12% to $146.81mn

Yet operating costs surged 11%, with half of the increase coming from higher manpower costs due to a new agreement with the bank's labor union.

The Bank of the Philippine Islands’ (BPI) profit rose 12 percent in the first half of the year as earnings growth soared in the second quarter.

In a statement, the nation's biggest lender by market value said net income rose to P6.2 billion ($146.81 million) from P5.5 billion (130.21 million).

Second-quarter net income increased 18 percent compared with 4.5 percent in the first three months.

Loans rose 16 percent to P409 billion ($9.68 billion), led by 24 percent growth in “middle market” loans and 20 percent from small and medium enterprises. This boosted net interest income by 12 percent.

Other income rose 7 percent “largely due to trust fees, service charges and rental income,” the bank said.

Operating costs rose 11 percent, with half of the increase coming from higher manpower costs due to a new agreement with the bank's labor union. The agreement included one-time payments, aside from salary increases.

View the full story in ABS-CBN News.