March 15, 2023Bank of Commerce (BankCom), hit a record high net income of ₽1.8 billion for the year ended 31 December 2022, a 49% increase from last year’s ₽1.2 billion, the highest since the acquisition of SMC. The bank’s stellar performance culminates its banner year wherein it successfully raised P3.37B of common stock capital through an IPO, was listed in the Philippine Stock Exchange, raised its maiden issuance of P7.5B bonds and was officially conferred a universal banking license. BankCom is an affiliate of San Miguel Corporation led by its President and CEO Ramon S. Ang. FY2022 HIGHLIGHTS: FINANCIAL: FY Net Income ₽1.8 billion, 49% increase from last year’s ₽1.2 billion and the highest since the acquisition. Gross Revenue increased by 30% to ₽8.12 billion from the ₽6.22 billion in 2021 Net Interest Income surged to ₽6.68 billion, higher by 24% compared to last year’s ₽5.4 billion Fee income amounted to ₽1.43 billion, representing a year-on-year growth of 74% Total Loans and Receivables breached ₽100 billion mark to ₽105.1 billion, 41% expansion from the ₽74.37 billion last year Investment Securities rose by 19% to ₽58.39 billion vs the ₽48.96 billion in 2021 Total Capital base stood at ₽28.03 billion, 20% higher than the ₽23.36 billion last year translating to a CAR of 17.97%, well above the minimum regulatory requirement. EVENTS: March 31, 2022 – marked BankCom’s stock market debut following an initial public offering (IPO) consisting of 280.60 million common shares at ₽12 per share July 26, 2022 – first investment banking transaction as selling agent of the ₽40 billion bond issuance to San Miguel Global Power Holdings Corporation, one of the largest deals in the country July 29, 2022 – successfully listed its maiden issuance of ₽7.5 billion 2-year bonds November 2, 2022 – conferred the authority to operate as a universal bank 4Q2022 HIGHLIGHTS: 4Q2022 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 from the ₽2.16 billion in 3Q2022. This is also higher by 46% compared to the ₽1.57 billion in the same quarter in 2021. Net Interest Income grew to ₽1.86 billion, 32% higher than the ₽1.41 billion last 4Q2021 REVENUES Total revenues increased to ₽8.12 billion, up 30% or ₽1.89 billion from ₽6.22 billion in 2021, due to the growth in net interest income, service charges, fees, and commissions, foreign exchange and gains on foreclosure and sale of property and equipment and foreclosed assets. Net Interest Income for 2022 surged to ₽6.68 billion, up 24% from last year’s ₽5.40 billion. This was mainly boosted by the increase in interest on loans and receivables and investment securities. Other income also supported the bank’s profit as it reached ₽1.43 billion, 74% more than the previous year’s ₽826.34 million. This is primarily due to the 61% surge in service charges, fees and commissions to ₽857.63 million. The significant increase was mainly brought about by: its new revenue stream (investment banking); foreign exchange gains of P150.32 million which more than tripled; gains on foreclosure, and sale of property and equipment and foreclosed assets amounting to ₽340.45 million and strong growth in trade and digital transactions. BALANCE SHEET As of end-2022, total assets stood at ₽217.52 billion, 9% higher than last year’s ₽199.71 billion mainly from the growth in loans and additional investment securities. ROA was at 0.86%. Total loans and receivables breached the ₽100 billion mark to ₽105.09 billion, 41% higher than the ₽74.37 billion in the same period last year, driven mainly by accelerated growth in corporate loans. The growth resulted to a loan-to-deposit ratio to 70.3%. Net NPL ratio at end-2022 was at 0.60% from 0.88% in 2021, reflecting improving asset quality. The Bank’s capital base stood at ₽28.03 billion as of December 31, 2022, 20% higher than the ₽23.36 billion last year, spurred by the proceeds from the Initial Public Offering in the first quarter of 2022. This translated into a ROE of 7.01%. Moreover, the Bank’s Tier 1 and CAR stood strong at 17.22% and 17.97% and remained well above the minimum regulatory requirement 7.5% and 10.0%, respectively. About BankCom Bank of Commerce traces its origins to the Overseas Bank of Manila, established in Binondo, Manila in 1963. In December 2020, the Intellectual Property Office (IPO) granted the copyright license for “BankCom” as the Bank’s official short name. An affiliate of San Miguel Corporation (SMC) and a listed universal bank provides a wide range of financial products and services: deposits, cash management/solutions, payments, lending, asset management, bancassurance, investment banking, foreign exchange and securities trading. The Bank has a network of 140 branches and aims to deploy more automated teller machines (ATMs) in addition to the 259 count at end December 2022.