BDO income drops 22% in H1

MANILA, Philippines - BDO Unibank Inc. posted P11.05 billion in net income in the first semester of 2014, roughly 22 percent lower than that P14.1 billion realized in the same period last year.

However, net earnings showed a 19-percent growth on a core operating basis.

“Sustainable profits as net interest income grew by 24 percent to hit P24.7 billion, on the back of a 21-percent growth in customer loans. BDO’s gross customer loans currently stands at P975.1 billion,” BDO said in a report.

Total deposits expanded to P1.37 trillion, equivalent to a 35-percent year-on-year growth rate. Seventeen new branches were opened in the second quarter of the year enabling BDO to sustain current account-savings account (CASA) growth and effectively reduce its cost of funds.

Trading and foreign currency gains reached P4.2 billion, while fee-based income expanded to P8.3 billion.

On the other hand, operating expenses amounted to P24.2 billion. Pre-provision operating profit (PPOP) remains solid as it recorded a first half figure of P14.7 billion.

Asset quality remains resilient with non-performing loan (NPL) ratio at 1.6 percent while its current coverage ratio stands at 174 percent.

“BDO continues to be well capitalized with a total capital adequacy ratio (CAR) of 14.5 percent, and common equity Tier 1 (CET1) ratio of 13.1 percent under the current Basel III environment. These ratios are well above the regulatory minimum of 10 percent, and 8.5 percent, respectively,” it said.

The universal bank of the SM Group has one of the country’s largest distribution networks, with more than 830 operating branches and over 2,300 ATMs nationwide. It also has a branch in Hong Kong as well as 13 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.