BDO Unibank, Inc. (BDO) sustained its solid performance through the first nine months of 2013 as net income grew by 73 per cent to P18.2 billion from P10.5 billion in the same period last year.

“Our core businesses continued to deliver very good numbers despite pressures from excess system liquidity and capital market volatility,” said BDO President Nestor V. Tan.

Gross customer loans increased by 17 per cent to P846.4 billion on broad-based expansion across key markets. Meanwhile, total deposits accelerated by 40 per cent to P1.2 trillion, led by the steady growth in low-cost deposits as well as the inflow of maturing Special Deposit Accounts (SDA) funds from the Bangko Sentral ng Pilipinas (BSP). The BSP has gradually phased out the SDA facility since July and will be closed to individual placements by end November.

The growth in both loans and deposits contributed to a 16 per cent hike in net interest income to P 31.0 billion. Further, non-interest income stepped up by 36 per cent to P25.8 billion on the double-digit expansion in both fee-based income and trading and foreign exchange gains. The growth in operating expense, meanwhile, remained steady at 8 per cent.

The Bank’s gross non-performing loan (NPL) ratio fell to 2.4 per cent by end-September 2013. Reflective of its conservative provisioning stance, the Bank set aside provisions of P5.1 billion to lift its NPL Coverage ratio to 152 per cent.

As of end-September 2013, BDO’s Capital Adequacy Ratio (CAR) and Tier 1 Capital ratio of 17.1 per cent and 15.3 per cent, respectively, remained well above the regulatory minimum, and comfortably exceeding the Basel III requirements set for implementation in January 2014.

“We are on track and very optimistic of hitting our P20.4 billion guidance for 2013.” said Mr. Tan.

About BDO

BDO is a full-service universal bank which provides a wide range of corporate 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 790 operating branches and over 2,100 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 June 30, 2013. For more information, please visit www.bdo.com.ph.