Core businesses lift BDO net to P32B
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Tue, 26 Feb 2019 16:30:26 +0000
BDO Unibank Inc.’s net income rose to P32.7 billion last year on the back of strong recurring earnings from its core businesses.
In a disclosure on Tuesday, the Sy-led banking giant said the amount was a 16.3-percent increase from P28.1 billion in 2017, and also beat its P31-billion full-year guidance.
It added that it was “the first Philippine bank to breach the P3-trillion mark in total assets.”
BDO credited the profit increase to the solid growth in its lending and deposit-taking businesses.
Gross customer loans increased by 15 percent to P2 trillion, which the lender attributed to healthy increases across all market segments. Total deposits, meanwhile, jumped by 14 percent to P2.4 trillion, with low-cost current account/savings account ratio at 70 percent.
This resulted in the 20-percent expansion in BDO’s net interest income to P98.3 billion on better net interest margins, which improved to 3.64 percent from 3.48 percent in 2017.
Non-interest income reached P49.7 billion, with fee-based income contributing P30.7 billion and insurance premiums up by 20 percent.
Overall, gross operating income grew by 15 percent to P148 billion.
Operating expenses climbed by 16 percent to P98.0 billion, which BDO said was in line with its sustained investments in branch network and strategic initiatives.
The bank claimed it had remained prudent and set aside P6.3 billion in provisions, even as its non-performing loans (NPL) ratio further improved to 1 percent from 1.2 percent in the fourth quarter of 2017.
NPL cover was at 183 percent, higher than 2017’s 146 percent.
BDO’s capital base stood at P328.1 billion, with capital adequacy ratio and common equity tier 1 ratio at 13.7 percent and 12.1 percent, respectively — both at above regulatory levels.
“BDO is well-positioned to take advantage of market opportunities and strengthen its leadership position in the industry by leveraging on its strong business franchise and extensive distribution network,” the bank said.
BDO shares increased by P2 or 1.55 percent to close at P131 each on Tuesday.
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