BDO sees record P31 billion income this year

MANILA, Philippines — BDO Unibank Inc. sees a double-digit growth in earnings to a record P31 billion this year from P28.1 billion last year amid the challenging and competitive operating landscape in the country’s banking industry.

Nestor Tan, president and CEO of BDO, said the bank’s core businesses including loans, deposit funding, and fees would continue to carry the bank this year together with the momentum built over the last five years.

The projected 10.3 percent growth in net income this year is faster than the seven percent increase registered last year.

Tan said the slight increase in interest rates as yields start to move up would also work in BDO’s favor.

He said the bank would continue to invest in One Network Bank for micro, small and medium enterprise (MSME) lending, BDO Life for insurance, and BDO Nomura for wealth management to serve as drivers of future growth.

“So basically the core business will lift us, but we will still continue to invest in our new businesses so that we will have the growth three to five years from now,” Tan said.

Tan said the bank is bullish about the domestic economy as the gross domestic product (GDP) is seen sustaining its growth amid massive infrastructure spending.

Tan also cited the risks brought about by rising inflation and interest rate, as well as the unclear impact of the tax reforms under Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

The bank’s net income expanded by only 1.2 percent in the first quarter to P5.9 billion from P5.83 billion in the same quarter last year.

Excluding the impact of shift to the Philippine Financial Reporting Standards 9, BDO said its earnings from January to March this year would have reflected a 16 percent increase versus the same period last year.