At its annual stockholders meeting today, BDO Unibank, Inc. (BDO) President, Mr. Nestor V. Tan, reported the Bank’s full year 2013 results to its shareholders; a record P22.6 billion in net income. This figure exceeded its earlier P20.4 billion earnings guidance, and is 56 percent higher than the P14.5 billion profit in 2012.

Mr. Tan indicated that the Bank’s outstanding performance was attributed to increased earnings from its core businesses; mainly lending and deposit taking andfee based services,accompanied by notable trading gains. Despite its continued business expansion, operating expense growth was well managed, and asset quality continued to improve. Capital remained well above the Basel III minimum requirement. As a result, the Bank achieved a 14.5 percent Return on Common Equity (ROCE).

The Bank opened fifty two (52) new branches in 2013, and followed this up with eight (8) new branches so far this year. Most of these were set up outside Metro Manila, thereby bringing its total domestic branch network to 822 as of end-March 2014.

BDO also announced its first quarter results for the current year. Q1 net income was recorded at P5.5 billion, 46 percent lower year-on-year given that last year’s figure included exceptional trading gains. However, it is noteworthy that the Bank’s core businesses remained in high gear with further gains in loans and low cost deposits.

Q1 net interest income grew by 27 percent year-on-year, and continued to be the main earnings driver at P12.2 billion. This is primarily attributed to the Bank’s thriving customer loan business which grew by 23 percent in the first quarter to hit P956 billion, supported by a 37 percent growth in its low cost deposits. The Bank’s total deposit base currently stands at over P1.3 trillion.

Fee based income from payments, transaction banking, and asset management services also went on to expand at a rate of 16 percent year-on-year; leading toan income contribution of P3.9 billion. Treasury related activities were also off to a good start with a contribution of P2.2 billion in earnings.

With all key businesses operating at elevated levels, the Bank was able to sustain its previous quarter’s pre-provision operating profit (PPOP) of over P7 billion despite a slight uptick in operating expense brought about by volume related expenditures. Excluding the one-off gains

booked in Q1 2013, the Bank’s first quarter operating income reflected a 31 percent growth in terms of solid recurring earnings.

The Bank’s asset quality was buoyed by further improvement in its NPL ratio to 1.5 percent. NPL cover, on the other hand, expanded to 175 percent as the Bank maintained its conservative provisioning given the uncertainty in the market.

In view of the Bank’s outstanding performance in 2013, a special cash dividend of P 0.90 per share was approved at its board meeting earlier today. The Bank likewise disclosed its earnings guidance of P22.8 billion for 2014. While the figure is flat compared to 2013, it reflects the replacement of one-time trading gains earned in 2013 with high quality earnings derived from the core businesses, and indicates the sustainability of the Bank’s business franchises.

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 more than 800 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.

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 December 31, 2013. For more information, please visit www.bdo.com.ph.