BDO Unibank, Inc. (BDO) posted an unaudited net income of P10.5 billion for the first nine months of 2012, up 38 percent against the P7.6 billion earned during the comparable period in 2011. The Bank sustained the growth in its core lending and deposit-taking businesses and recurring fee-based service income. The Bank also capitalized on the favorable conditions in the bond markets to realize robust trading gains from its treasury activities.

Gross customer loans expanded by 17 percent to P724 billion, while total deposits increased to P860 billion. This resulted in an improvement in net interest income to P26.8 billion. Fee-based income increased to P10 billion, driven by the solid growth from the service businesses. Trading and foreign exchange gains jumped 50 percent to P7 billion. Overall, total non-interest income went up by 23 percent to P18.9 billion.

Operating expenses inched up to P29.7 billion, while P4.2 billion in provisions were set aside during the period. Gross non-performing loan (NPL) ratio is at 3.1 percent, while gross NPL coverage is at 124 percent.

Following a successful US$1 billion stock rights offer that was concluded in July 2012, the Bank’s capital base expanded to P152 billion, making BDO the largest-capitalized bank in the industry. The Capital Adequacy Ratio (CAR) and Tier 1 Capital ratio remain comfortably above the regulatory minimum at 20.3 percent and 15.2 percent, respectively, as of end-September 2012.

Given this performance, the Bank is very optimistic on achieving its year-end targets.

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 750 operating branches and over 1,800 ATMs, nationwide. As of 30 June 2012, 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.