Investors tepid on BPI amid nod on merger with Robinsons Bank - BusinessWorld Online

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The share price of Bank of the Philippine Islands (BPI) moved sideways last week after shareholders approved its proposed merger with Robinsons Bank in a move seen to boost the former’s revenues and market presence. READ:

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The Ayala-led bank’s share price went down by 0.1% week on week, finishing at P109.90 apiece on Friday from its P110-per-share close the previous week. Year to date, however, the stock has risen by 7.7%. “A day after the PR was released, BPI rallied by almost 3%, implying that the investing public generally viewed the merger positively,” he said.

BPI reported a third-quarter net income of P10.14 billion, up by 77.3% from P5.72 billion in the same quarter in 2021. “As always, investors should keep their tabs on how the BSP will react to the upcoming Fed’s policy meeting. This is because a sharp unexpected increase in our local benchmark rate could potentially dampen loan demand and strain the paying capacity of BPI’s borrowers,” Mr. Limlingan said.

 

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