BDO Unibank, Inc. (BDO) posted an audited net income of P10.5 billion in 2011. This is in line with its earnings guidance and represents a 19 percent growth over the P8.8 billion net profit posted in 2010.

Despite the slower GDP growth of 3.7 percent, BDO expanded its loan portfolio by 24 percent to P670.1 billion in 2011 by focusing on creditworthy borrowers in fast-growing industry sectors. The Bank not only outpaced the industry's 19 percent loan growth but also kept asset quality in check. The Bank's gross non-performing loan (NPL) ratio further declined to 3.4 percent by end-2011 from 4.7 percent in 2010 while NPL coverage improved to 106 percent from 92 percent as the Bank continued to provision conservatively, with P6.1 billion in provisions set aside for the year.

BDO sustained its robust growth in low-cost deposits leading to a 10 percent increase in total deposits to P858.6 billion. While the Bank's funding mix improved, net interest income remained flat due to the continued downtrend in asset yields arising from excess system liquidity.

The Bank's recurring fee-based income from its service businesses rose 18 percent to P12.3 billion. Amid a volatile external environment, BDO generated a 10 percent increase in trading and foreign exchange gains to P6.5 billion. Along with other miscellaneous income, BDO recorded a 17 percent growth in non-interest income to P20.9 billion.

Having completed its investments in capacity, BDO is now starting to benefit from scale with operating expenses increasing only moderately by 4 percent to P36.3 billion. Pre-provision operating profit therefore grew 7 percent to P18.4 billion.

BDO's Capital Adequacy Ratio (CAR) improved from 13.8 percent in 2010 to 15.8 percent. The full year 2011 results resulted in enhanced shareholder returns, with Return on Common Equity at 11.7 percent.

Looking forward, the Bank will continue to take advantage of promising growth opportunities across industry and geographic segments while positioning defensively against potential external or industry threats.

About BDO

BDO is a full-service universal bank that provides a complete array of industry-leading products and services to the retail and corporate markets including Lending (corporate, middle market, SME, and consumer), Deposit-taking, Foreign Exchange, Brokering, Trust and Investments, Credit Cards, Corporate Cash Management, and Remittances. Through its subsidiaries, the Bank offers Leasing and Financing, Investment Banking, Private Banking, Bancassurance, Insurance Brokerage, and Stock Brokerage services.

BDO has one of the largest distribution networks, with more than 740 operating branches and over 1,600 ATMs, nationwide. As of 31 December 2011, BDO is the country's largest bank in terms of total resources, customer loans, total deposits and assets under management. For more information, please visit www.bdo.com.ph.