BPI shares dip on profit taking, NPL concerns

SHARES of Bank of the Philippine Islands (BPI) edged lower last week after the release of its first-quarter (Q1) financial results, as investors engaged in profit taking following the stock’s recent rally, while concerns over an uptick in nonperforming loans (NPLs) dampened investor sentiment.

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Data from the Philippine Stock Exchange (PSE) showed that BPI was the fourth most traded stock last week, with 9.49 million shares worth P1.32 billion changing hands.

The Ayala-led bank’s share price declined by 0.7% week on week to P135.90 apiece on Friday from P136.80 on May 9. The drop was smaller than the 2.8% contraction in the financial sector index but contrasted with the 0.1% gain in the benchmark PSE index during the same period.

Year to date, BPI shares have risen by 11.4%.

The market was closed on Monday for the Philippine general election.

“BPI rallied ahead of its first-quarter earnings on strong expectations but pulled back after the results due to profit taking and concerns over higher NPLs, softer margins, and moderate loan growth despite profit rise,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

BPI reported a 9% year-on-year increase in attributable net income to P16.64 billion in the first quarter from P15.26 billion in the same period last year.

Ralph Jonathan B. Fausto, research associate at China Bank Securities Corp., said the stock’s price action during the week was driven by “broad-market profit taking as most big banks saw particular strength in recent weeks — making them vulnerable to profit taking.”