In a financial report filed with the Securities and Exchange Commission, BDO said the growth last year was driven by a robust performance by fee-based activities, primarily trust, branch banking and treasury fixed income dealership which grew by a combined 120 percent.
Net interest income rose 32 percent from P1.67 billion in 2001 to P2.2 billion last year, primarily due to a non-recurring gain from secondary shares sold during BDO’s initial public offering in May 2002.
BDO said operating expenses went up by 30 percent to P2.66 billion as a result of the full-year impact of the operating costs of Dao Heng Bank branches, as well as a higher operating volume and manpower complement brought about by business expansion.
It set aside P1.17 billion in provisions for probable losses as against the P300 million allotted in 2001.
BDO said total assets grew 56 percent to P121.1 billion from only P43.2 billion the previous year. Deposits increased by P36 billion or 64 percent to P92.57 billion while loan portfolio increased 36 percent to P52.56 billion.
The bank’s ration of non-performing loans to total was at eight percent compared to 11.4 percent last year. The industry average stood at 16.27 percent as of November last year.
As it projects continued growth in its loan and funding portfolios, BDO is eyeing to boost profits this year by 30 percent. The bank’s new branches and loans are expected to contribute to the targetted growth.
BDO said the ongoing integration of branch network of First e-Bank is expected to further strengthen its presence in both Metro Manila and provincial areas.
The bank purchased P10 billion worth of assets and liabilities of First e-Bank last year. The deal has resulted in an increase in BDO’s customer base by an estimated 80,000 depositors and its network to 180 branches.
Formerly called PDCP Development Bank, First e-Bank changed its name in early 2000 to reflect its focus on electronic banking. It used to be the thrift banking unit of Metro Pacific Corp.
BDO is also exploring new markets through non-core businesses such as transaction banking and credit card.
The Sy-controlled bank started its operations as a universal bank in 1996 after being granted by the BSP a permit in late 1995.
Last year, Banco de Oro was ranked 13th in terms of resources and 11th in deposits, loans and capital.
The bank offers a wide array of products and services to its clients. Aside from deposits and placements, loans and trade financing, it also provides trust and investment services, cash management services, foreign exchange and securities dealing as well as financial and investment advisory services.