RCBC, BDO, BPI, EastWest profits drop in Q1

Several banks in Philippines
Several banks in Philippines

The start of 2014 is not so good for several banks in the country as they posted lower profits in the first quarter of the year.

Rizal Commercial Banking Corporation (RCBC), Bank of the Philippine Islands (BPI), BDO Unibank Inc. and EastWest Bank have failed to surpass their previous net profit records.

RCBC suffered 25 percent decrease in profit in the first three months of 2014.

Lorenzo V. Tan, RCBC President and CEO, in a statement, said that their unaudited consolidated net income in the most recent period was P1.33 billion, down from P1.77 billion in the first quarter of 2013.

“During the first quarter last year, we took advantage of the favorable trading opportunities which led to hefty trading gains for the Bank. This year the financial market conditions have reversed, a stricter capital adequacy regulation under Basel 3 is in place, and competition continues to be at a heightened pace,” Tan said.

BPI’s income, on the other hand, recorded 57 percent decline to P3.603 billion January to March period, from P8,146 billion in the same period of 2013.

BPI said the decrease was due to lower trading gains.

“Trading results were not surprising given the interest rate environment and the cut-backs in risk appetite and stronger focus on client business,” Cezar Consing, BPI President and CEO said.

BDO experienced profit decline in the first three months of the year after earning P5.5 billion, it went down by 45 from the previous period.

A report of The Philippine Star said that it was due the absence of exceptional trading gains.

Meanwhile, EastWest Bank registered a 38 percent decline to P455.7 million net income in the first three months of 2014

EastWest President and CEO Antonio C. Moncupa, Jr., in a statement, said that it was due to a P756 million drop in trading income.IMT