First BanCorp (FBP) has reported a 63.13 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $24.07 million, or $0.11 a share in the quarter, compared with $14.76 million, or $0.07 a share for the same period last year.
Revenue during the quarter grew 9.16 percent to $122.82 million from $112.51 million in the previous year period. Net interest income for the quarter dropped 5.40 percent over the prior year period to $118.18 million. Non-interest income for the quarter rose 39.39 percent over the last year period to $26.15 million.
First BanCorp has made provision of $21.50 million for loan losses during the quarter, down 31.03 percent from $31.18 million in the same period last year.
Net interest margin contracted 13 basis points to 4.06 percent in the quarter from 4.19 percent in the last year period. Efficiency ratio for the quarter improved to 61.18 percent from 64.92 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
Aurelio Alemán, President and Chief Executive Officer of First BanCorp., commented: "We posted another positive quarter of earnings, $24.1 million or $0.11 per diluted share compared to $22.0 million in the second quarter. Our pre-tax pre-provision income was $50.2 million, in line with prior quarters. Our franchise metrics continue to progress in the right direction: efficiency improvement, core deposit growth and deposit mix, and we were successful in executing strategies to achieve loan origination and renewal targets which increased 11% to $898 million in the third quarter, the highest level since 2014. Asset quality remains challenging with a higher level of charge-offs this quarter, yet we were able to reduce nonperforming assets and we experienced a decline in adverse migration.
Assets, liabilities fall
Total assets stood at $12,075.25 million as on Sep. 30, 2016, down 5.82 percent compared with $12,820.99 million on Sep. 30, 2015. On the other hand, total liabilities stood at $10,275.37 million as on Sep. 30, 2016, down 7.60 percent from $11,120.04 million on Sep. 30, 2015.
Deposits outpace loan growth
Net loans stood at $8,706.36 million as on Sep. 30, 2016, down 4.41 percent compared with $9,107.57 million on Sep. 30, 2015. Deposits stood at $8,981.31 million as on Sep. 30, 2016, down 7.57 percent compared with $9,716.46 million on Sep. 30, 2015.
Investments stood at $2,028.76 million as on Sep. 30, 2016, up 4.89 percent or $94.57 million from year-ago. Shareholders equity stood at $1,799.89 million as on Sep. 30, 2016, up 5.82 percent or $98.94 million from year-ago.
Return on average assets moved up 31 basis points to 0.78 percent in the quarter from 0.47 percent in the last year period. At the same time, return on average equity increased 186 basis points to 5.35 percent in the quarter from 3.49 percent in the last year period.
Nonperforming assets moved up 20.55 percent or $126.86 million to $744.05 million on Sep. 30, 2016 from $617.19 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 6.16 percent in the quarter, up from 4.81 percent in the last year period.
Average equity to average assets ratio was 14.58 percent for the quarter, up from 13.39 percent for the previous year quarter. Book value per share was $8.11 for the quarter, up 4.78 percent or $0.37 compared to $7.74 for the same period last year.
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