Bank of Commerce Hits New Performance Records in 2007

Bank of Commerce had a great finish for a great year, performing beyond its financial targets in terms of both profitablity and growth, with Net Income After Tax before Provision for Losses of P983 million, and a Net Income After Tax and after provisions at P504 million.

The Bank reckons that in 2007, net interest income exceeded total operating expenses, where Net Interest Income escalated by P671 million or 34.9%, totaling P2.6 billion. “We had set out to ensure that in 2007, one of our main indicators of success – the despite the odds posed by falling rates and fierce competiton – would be how well our net interest income would cover for operating expenses. This we have attained, and more. Indeed, our success was a combination of efforts in actively growing loans and deposit volumes, astute funds management, and efficient cost management."

For the whole 2007, the Bank performed exceptionally well in producing results that measured up against key financial targets. Gross Interest Revenues were P310 million or 6.6% higher than year - ago, breaching the P5 billion threshold.

Gross Loans, in average daily balances, reached P31.4 billion, were net of past due obligations totals P29.5 billion. Total Deposits on the other hand increased by 12% to reached P61.3 billion. Both accounts record significant increase from that of last year's performance.

Capital Funds increased, and will continue to increase, as the full investment of San Miguel Properties and the San Miguel Retirement Fund are ploughed in. The partnership, providing the two, (2) entities from the San Miguel Group with a total of 34% share, will undoubtedly lend greater strength and stability to what already is a dynamic and continuously profitable enterprise.

All these attainments represent new highs for the Bank, making 2007 truly a historic year for Bank of Commerce, being the first year in a programed three - year plan. President De Mesa affirmed the Bank's steady course towards the goals of 2009, citing that 2008 will be a year dedicated to strengthening operational and people capability, amidst the expansion efforts that were committed in the plan. These include continued developments and information technology and the setting up of an Internet Banking facility. Aggressive hiring efforts will be embarked upon to attract talents and offer defined career paths, supported by curriculum - based training programs. In terms of marketing, the Bank is expected to release new offerings within the year, aligned with the needs of its identified market segments.