INQ7 MONEY - BREAKING NEWS
August 02, 2006
Updated 10:30:41 (Mla time)
Cecille Yap
Xinhua Financial News Service
BANK of the Philippine Islands (BPI) was lower, extending Tuesday's decline, on profit-taking triggered by the bank's weak earnings in the second quarter, dealers said.
Early in the session, BPI was down 2.00 pesos or 3.74 percent at 51.50, on volume of 86,700 shares. On Tuesday, it fell 0.50 peso.
BPI, the country's second-largest lender in terms of assets, reported that its first-half net profit rose 7 percent year-on-year to 4.6 billion pesos.
It gave no second-quarter data. But given that it posted first-quarter net profit of 2.5 billion pesos, its first-half results imply that its second-quarter net profit was 2.1 billion pesos -- less than it made in the first quarter and less than the 2.3 billion pesos it made in the second quarter of last year.
Macquarie Securities said: "The net income performance is below our expectation of 4.75 billion pesos net income (up 10 percent year-on-year) for the first half."
The brokerage said the first-half increase in BPI's net interest income of 3 percent year-on-year was weak, and implied that growth in loans might have been negated by a decline in interest spreads.
However, Macquarie is keeping its "outperform" rating for BPI, with a target price of 59 pesos.
(1 dollar = 51.585 pesos)
http://services.inq7.net/express/06/08/02/html_output/xmlhtml/20060802-13012-xml.html
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