Bank of the Philippine Islands posted a 29.5% year-over-year increase in net income for the nine months ended Sept. 30.

Net income for the period rose to 22.03 billion Philippine pesos from 17.01 billion pesos in the year-ago period. Comprehensive income for the nine-month period amounted to 23.12 billion pesos, up 51.1% from a year earlier, according to an Oct. 16 stock exchange filing.

For the third quarter, the bank booked a net income of 8.29 billion pesos, up 38.6% year over year.

Noninterest income rose 37.5% year over year to 22.34 billion pesos, while fees, commissions and other income grew 19.1% year on year primarily from higher fee revenues from credit cards, transaction banking, electronic channels, deposit products and insurance.

The bank booked provisions for losses, including specific reserves for Hanjin Heavy Industries & Construction Philippines Inc., worth 4.58 billion pesos. Operating expenses for the nine-month period grew 15.6% to 37.09 billion pesos from a year earlier.

Net interest margin for the period widened by 26 basis points on the back of higher asset yields. The lender's nonperforming loan ratio at the end of September came to 1.81%, unchanged from the prior-year period.

At the end of September, the lender's capital adequacy ratio stood at 16.76%, while its common equity Tier 1 ratio came to 15.87%.

As of Oct. 16, US$1 was equivalent to 51.57 Philippine pesos.