BPI closes at all-time high after reporting record profit for Q3

BANK OF THE PHILIPPINE Islands (BPI) shares rose to a record last week after reporting strong earnings results for the third quarter.

Shares of the Ayala Corp.-led lender closed at P146 on Friday, up 2% from P143.10 a week earlier. The stock has climbed by 40.7% this year.

BPI was the second-most actively traded stock by value turnover at P1.85 billion covering 12.91 million shares on Oct. 21-25.

Jash Matthew M. Baylon, an analyst at First Resources Management and Securities, said the listed bank ended the week strong despite market uncertainties caused by the lack of positive catalysts on both the local and global scenes.

“The strong movement of the stock could be attributed to its recent earnings, which grew by 29.4%, driven by robust revenue growth on its net interest income and loan growth,” he said.

He also said that the weak peso might affect the bank’s performance.

Jeff Radley C. See, head trader at Mercantile Securities Corp., said the lender’s third-quarter earnings report surprised investors, which resulted in a strong rally and break all-time high.

BPI’s net income rose by 29.4% to a record P17.4 billion in the third quarter, bringing its nine-month profit to an all-time high of P48 billion, a 24.3% gain year on year.

Meanwhile, consolidated revenues for July to September grew by 26.3% to P44.6 billion, bringing the nine-month figure to P125.8 billion, a 24.7% yearly gain.

Mr. Baylon expects BPI to continue its double-digit growth this year due to easing inflation, which could boost consumer sentiment.

He added that the reserve requirement ratio cut is also expected to boost loan growth.

“We are currently looking at its 52-week high P148.80, followed by its psychological resistance at P150. Conversely, we consider the P140 as a strong support for the stock,” Mr. Baylon said.

Mr. See said the overall sentiment for the financial sector is bullish due to the still relatively high-interest rate environment, but BPI’s net profit was “impressive.”

He pegged the stock’s resistance level at P150 and the support level at P145 and P138.50. — Kenneth H. Hernandez