BDO earnings up 49.3% in Jan-Sept
Credit to Author: Mayvelin U. Caraballo, TMT| Date: Mon, 28 Oct 2019 17:19:11 +0000
LISTED BDO Unibank Inc. (BDO) announced on Monday that its net income grew by 49.3 percent to P32.1 billion for the first nine months of the year from P21.5 billion during the same period in 2018.
In a disclosure, the bank owned by the Sy family said its net profit was largely driven by the expansion in recurring core revenues.
Its latest net income translated to a return on common equity of 12.5 percent, compared to 9.5 percent last year.
BDO said the sustained growth in the middle-market and consumer segments supported its customer loans to increase by 6 percent to P2.1 trillion.
While total deposits rose by 3 percent to P2.4 trillion, with low-cost current account/savings account deposits expanding by 6 percent and accounting for 72 percent of total deposits, net interest income jumped P88.5 billion.
Meanwhile, the bank said fee-based income and insurance premiums, which accelerated by 14 percent and 23 percent to P25.4 billion and P10.8 billion, respectively, boosted its non-interest income to P44.1 billion.
It, however, added that trading and foreign exchange gains of P4.3 billion for the nine-month period “reflect[s] a normalized level compared to 2018, whe[re] a more volatile environment prevailed.”
As such, gross operating income rose to P132.6 billion, BDO noted.
The bank said its continuing expansion as well as increased volume-related expenses raised its operating expenses by 20 percent to P85.8 billion.
Provisions amounted to P4.2 billion as BDO maintained its conservative credit and provisioning policies. Gross non-performing loan (NPL) ratio was steady at 1.2 percent, while NPL cover remained high at 168.2 percent.
The bank’s capital base increased to P364 billion, with common equity tier 1 and capital adequacy ratio improving to 13.1 percent and 14.6 percent, and remaining comfortably above the current regulatory minimum under the Basel III framework.
“With its focused growth strategy, strong business franchise, solid balance sheet and extensive geographic reach, the bank remains solidly positioned to capitalize on the country’s solid economic pace and growth opportunities in underserved and emerging markets,” it said.