FICOBank Surpasses 2014 Net Profit Goal

FICOBank marked its CY 2014 with a new record in its bottom line, surpassing the Php115-million net profit goal. This remarkable achievement is indeed a historic one, as the Bank, in its 34 years of serving the banking public, has eventually breached the century mark in its net earnings.

The Bank has posted a Php116.14-million level in its net income for the year ended December 31, 2014. This figure represents an increase of Php20.13 million, or 20.97 percent, compared to previous year’s record of Php96.01 million. This significant growth was brought about by the Bank’s steady stream of earnings from its core lending activities, intensive disposal of real and other properties acquired (ROPA), intensified collection of non-performing loans (NPLs), increased miscellaneous income, and lesser interest expense.

Likewise, FICOBank exhibited a higher year-on-year growth rate in earnings (at 11.44 percent) than that of its expenses (at 8.82 percent). Thus, a positive jaws ratio of 2.62 percent was registered for the year that has just ended, showing the Bank’s strength in managing its business.

Owing to its winning products—Agricultural Loan, Commercial Loan, Jewelry Loan and Salary Loan—the Bank’s interest income on loans grew by Php28.64 million, or 9.02 percent. With it, the Php317.52-million record a year earlier mounted to Php346.16 million at the end of 2014. It is noteworthy as well to mention that this increase doubled the 3.76-percent growth in 2013. In addition, the Bank’s non-interest income rose by Php11.37 million or 28.68 percent, making the Php39.65-million year-ago record towered to Php51.02 million in 2014.

FICOBank’s resources were also properly allocated throughout the year, as the cost-to-income ratio went down to 76.59 percent from the previous year’s 78.43-percent ratio.

As per data published by the BSP, the 2014’s net income growths of the various categories of banks in the country were 0.00 percent for rural/cooperative banks, 5.82 percent for thrift banks, -8.17 percent for universal/commercial banks and -7.09 percent for all banks. With such industry growths vis-à-vis the Bank’s 20.97-percent growth record, it is a no-brainer to make one’s mind up that FICOBank performed better in 2014.

With FICOBank’s earning power, reflecting the effective utilization of its available resources and the efficient management of its banking activities, the second-century mark in its net income is expected to be achieved by the end of 2017, as planned.