Banco de Oro breaks P1-B ceiling

Banco de Oro Universal Bank (BD0) has doubled its net earnings to P1 billion. This was much better than the initial budget that was set at the start of 2002.

The bank’s exceptional performance was attributed to the strong performance from its trust business, branch banking activities and treasury fixed-income dealership, which grew by 120 percent on a combined basis. A one-time gain from the secondary shares sold during the successful initial public offering (IPO) in May also contributed to the record performance of the bank.

Net interest income grew to P2.2 billion, for a year-on-year increase of 32 percent compared to 2001. Last year’s financials saw the full year impact of the operating costs of the Dao Heng Bank branches from the merger with BDO from June of 2001.

BDO is now ranked among the top 10 banks in the country with assets of over P121 billion as of end December. This is an increase of over 56 percent while deposits increased by over 64 percent compared the previous year.

Loan portfolio grew by over 36 percent and earned over P52.56 billion. Capital improved significantly due to the proceeds from the IPO, additional capital raised and undivided profits. It also entered into an agreement with the International Finance Corp. (IFC) for a $20 million five- year convertible loan that will qualify as a Tier 2 investment.

BDO’s non-performing loans (NPL) improved significantly to eight percent of total loans from 11.4 percent in 2001. For comparison purposes, the industry’s NPL stood at 14.95 percent by end December.

Meanwhile, the Henry Sy-led expanded commercial bank was also cited twice in Asia Money magazine as the country’s best newly listed company and third best small company. It is also the third straight year the bank was rated by Fitch Ratings, which mentioned its strong capital position and its continuous investment in infrastructure.

For 2003, BDO plans to continue to grow its lending and deposit business, with complimentary growth from trust banking and treasury activities as well as the insurance business. It has a major stake in the life and non-life businesses of Generali Pilipinas.

New markets are being explored through non-traditional businesses such as cash management and credit card. The integration of the 1st eBank branches is expected to further strengthen its presence in both Metro Manila and provincial areas.