MANILA, Philippines - Ayala-led Bank of the Philippine Islands (BPI) reported a 33% growth in profits last year on the back of higher interest and non-interest earnings.

In a disclosure to the Philippine Stock Exchange on Monday, the country's third largest lender in terms of assets said its net income reached P8.5 billion in 2009 from the P6.4 billion recorded in the same period in 2008.

From October to December 2009, BPI said it had a 7% increase in profits.

Total revenues for the year grew 15%, supported by a 10% jump in net interest income and a 25% rise in non-interest income, which included fee-based gains. The growth in net interest income was fueled by a 9% increase in average asset base and a slight improvement in net spreads.

"After all the doom and gloom at the beginning of the year, we are grateful that BPI had solid growth and earnings in almost all sectors in 2009," BPI president and chief executive officer Aurelio Montinola III said.

"With the global economic recovery under way, we expect BPI to even perform better in 2010," he added.

BPI ended 2009 with total resources of P725 billion, 9% higher than the previous year. Deposits rose 7% to P579 billion while assets under management grew 50% to P439 billion.

Net loans only grew 2% last year as multinational paid down their loans by 22%. Still, credit card receivables, loans by small businesses, and consumer loans posted double-digit growths in 2009 at 16%, 11%, and 10%, respectively.