BDO posts P11.7 billion income in 1H 2015

BDO Unibank, Inc. (BDO) registered a net income of P11.7 billion in the first six months of 2015 on the sustained growth in the Bank’s lending and deposit-taking businesses, notable gains from fee-based and treasury activities and managed operating expenses.

Following are highlights of the Bank’s core business performance vs. year-ago:

• Customer loan portfolio was ahead by 16 per cent to P1.1 trillion,

• CASA deposits advanced by 17 per cent,

• Net interest income (NII) higher at P27.1 billion,

• Opex growth kept at 10%.

BDO’s sustained momentum in its core lending and deposit-taking businesses yielded a NII growth of 10%, which was tempered by the prevailing liquidity in the system. Income from fee-based services and treasury activities increased by 14% and further boosted the Bank’s overall performance. As such, recurring revenue streams continued to account for over 83% of total operating income.

BDO’s asset quality showed sustained improvement with gross non-performing loan (NPL) ratio dropping further to 1.2 per cent from 1.6 per cent a year-ago. However, the Bank continued to prudently set aside provisions of P2.1 billion leading to a higher NPL cover of 198 per cent vs. 174 per cent in the same period last year.

The Bank maintained a solid capital base of P181 billion, with both the Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) ratio all comfortably above the regulatory minimum under the Basel III framework at 13.6 per cent and 11.5 per cent, respectively.

With a strong business franchise, sustained growth strategy and solid capital base, BDO remains well-positioned to take advantage of opportunities in a growing economy.

About BDO

BDO is a full-service universal bank which provides a wide range of corporate, commercial and retail banking services. These services include traditional loan and deposit products, as well as treasury, trust banking, investment banking, private banking, cash management, leasing and finance, remittance, insurance, retail cash cards and credit card services.

BDO has one of the largest distribution networks, with 897 operating branches and over 2,700 ATMs nationwide. It also has a branch in Hong Kong as well as 27 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.

BDO ranked as the largest bank in terms of total assets, loans, deposits, capital and trust funds under management based on published statements of condition as of March 31, 2015. For more information, please visit www.bdo.com.ph.