BDO, EPCI Bank post strong results in 2006

The two banking institutions that will merge as Banco de Oro EPCI Inc. both reported strong financial results last year, laying the foundation for further growth, a top bank official said yesterday.

The merged entity is a product of Banco de Oro Universal Bank (BDO) and Equitable PCI Bank (EPCIB) with a combined resource base of P649.6 billion, a branch network of 700, and an automated teller machine (ATM) base of 1,200 for 2006.

"Both our banks have had very strong track records in the industry," said BDO president and EPCIB officer-in-charge Nestor V. Tan. We are quite confident that, upon integration, we will be able to draw on our combined strengths and thus serve our banking public even better."

Last year, BDO reported total resources of P304.5 billion or 30 percent better than the year ago level. EPCIB’s total resources, meanwhile, amounted to P345.14 billion at the end of 2006.

BDO posted an audited net income of P3.1 billion last year or a 23 percent growth from P2.5 billion in 2005.

EPCIB, on the other hand, reported a net income of P3.27 billion in 2006, or a 21 percent increase from P2.7 billion the year before.

BDO’s investment and loan portfolio levels pushed net interest income up 22 percent to P8.3 billion, while EPCIB said its net interest income rose to P11 billion.

BDO, the SM Group’s universal bank, also reported growth in non-interest income by 31 percent to P5.2 billion. Trading gain surged 72 percent to P2.7 billion, while trust fees and service charges increased 15 percent.

Total deposit liabilities expanded 44 percent to P230 billion, as net loans and other receivables likewise grew 34 percent.

EPCIB rebalanced its earning assets portfolio by reducing aggregate investment securities 18 percent to P62.3 billion and, with successful corporate strategies focused on middle market and consumer loan accounts, boosting loans and receivables 15 percent to P161.4 billion.

Meanwhile, non-interest income surged 30 percent to P12.5 billion, with P5.7 billion generated from service charges, fees, and commissions; P3.3 billion from trading and foreign exchange gains; and P3.4 billion from miscellaneous income.

At the start of 2007, BDO has 230 branches nationwide while EPCIB has 448 branches around the country and a branch in Hong Kong. All told, the two banks account for 700 branches, more than 1,200 ATMs, and an impressive depositor and cardholder base.

The BDO-EPCI merger had been approved last December by their respective shareholders in separate special stockholders meetings, and is currently awaiting final approvals from regulatory agencies.

Led by EPCIB vice chairperson Teresita Sy-Coson and Tan, the key officers of the two banks are ironing out an integration work plan designed to ensure that the competitive advantages and market leadership of the two banks would be preserved and built into the merged entity.

"The resulting consolidation of resources, talents, and networks will translate into greater stability, expertise, and accessibility that the banking public can rely on," Sy-Coson said.