BDO Unibank, Inc. (BDO) sustained its solid pace in the first six months of the year to post a 13% year-on-year increase in net income to P13.2 billion. This was a result of broad-based improvement across the Bank’s businesses and a one-time gain from the consolidation of BDO Life.
The Bank’s core lending, deposit-taking and fee-based businesses drove the Bank’s performance during the period. Customer loan portfolio grew to P1.4 trillion, outpacing the industry with a 21% rise. Total deposits went up by 17% to P1.8 trillion, driven by the 23% jump in low-cost (CASA), comprising 69% of total deposits. As a result, net interest income advanced by 17% to P31.7 billion.
Fee-based service income rose by 18% to P10.6 billion, generated from the Bank’s investment/wealth management, payments/electronic banking, capital markets and insurance businesses. Trading and foreign exchange income normalized and contributed P2.9 billion for the semester. Other income inclusive of the one-time gain from the consolidation of the Bank’s life insurance business settled at P8.6 billion. Without consolidation effects and one-off gains, other income grew by 13%.
Operating expenses increased by 31% due to the consolidation of ONB and BDO Life which were absent in the comparable period last year. Excluding ONB and BDO Life, operating expense growth would have been 12%, driven by higher manpower costs arising from CBA renegotiation last year, one-time expenses, as well as volume-related costs on the Bank’s business expansion.
The Bank continued to be conservative and set aside P1.7 billion in provisions even as asset quality remained stable. Gross non-performing loan (NPL) ratio was steady at 1.3%, while NPL cover remained high at 153%.
The Bank’s capital base stood at P211.1 billion, with Common Equity Tier 1 (CET1) and Capital Adequacy Ratio (CAR) all remaining above the current regulatory minimum under the Basel III framework.
Looking ahead, BDO hopes to continue its strong performance as it leverages on its solid business franchise, strong balance sheet and strategic initiatives to tap its target markets and take advantage of the country’s growth opportunities.
Oct 13, 2017 0Grid operator NGCP is expecting to complete its reinforcement of the Mindanao transmission backbone within the first quarter of 2019, months ahead of its target June 2019 completion. The Mindanao 230 kiloVolt (kV) Transmission Backbone Project will address the anticipated addition of bulk power...
Oct 10, 2017 0
Oct 09, 2017 0