Quantcast
Latest Stories

BDO profit hit P14B in H1

By

Banco de Oro Unibank, the country’s largest lender, posted a record-high first semester net profit of P14.1 billion, more than double the level posted in the same period last year, as unprecedented trading gains complemented growth in interest earnings.

“With record earnings for the period already representing more than two-thirds of its P20.4 billion guidance for 2013, the bank is optimistic of hitting its year-end targets as it expands its businesses while nimbly responding to market challenges,” BDO disclosed to the Philippine Stock Exchange on Monday.

The first half net profit of tycoon Henry Sy’s banking arm outpaced by 144 percent the P5.8 billion bottom line booked in the same period last year, as BDO reported strong performance across all business segments.

BDO expanded gross customer loans by 12 percent to P806.6 billion while total deposits broke the P1-trillion mark, rising by 17 per cent to P1.02 trillion on sustained increase in low-cost deposits.

Net interest earnings—banks’ main source of recurring income—rose by 14 percent to almost P20 billion from a year ago.

But non-interest income increased at a faster pace of 81 percent year-on-year to P20.3 billion, driven by fee-based service income of P7.6 billion, as well as “exceptional” gains from trading and foreign exchange activities despite the market volatility in late June.

On the expenditure side, the bank kept growth in operating expense steady at 9 percent.

In terms of asset quality, the ratio of non-performing loans (NPL) to total loan portfolio stood at 2.4 percent.  Despite the decline in soured loan ratio, BDO accelerated its loan-loss provisioning to P4 billion to boost its NPL coverage ratio to 148 percent, “reflective of its conservative provisioning policy,” the bank said.

Capital adequacy ratios to risk assets also remained above the regulatory minimum, ending June at 18.3 percent overall and 15.6 percent, for core or tier 1 capital ratio.

Meanwhile, BDO obtained board approval to redeem the bank’s remaining subordinated debt notes qualifying as tier 2 capital amounting to a total of P18 billion.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Banco de Oro , Business , profitability



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Anti-gay demo in Ethiopia cancelled
  • Obama launches measures to support solar energy in US
  • Nebraska toddler gets stuck inside claw machine
  • Philippine eagle rescued by Army turned over to DENR
  • Gunmen attack Iraq military base, kill 10 soldiers
  • Sports

  • Vietnam says it will not host Asian Games
  • Nadal passes clay landmark with 300th victory
  • Wawrinka waltzes through with Monte Carlo walkover
  • Power Pinays smash India in Asian Women’s Club volleyball opener
  • PH youth boxers off to stumbling start in AIBA World tilt
  • Lifestyle

  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • This is not just a farm
  • Clams and garlic, softshell crab risotto–not your usual seafood fare for Holy Week
  • Entertainment

  • Cannes film festival launches race for 2014 Palme d’Or
  • Jones, Godard, Cronenberg in competition at Cannes
  • Will Arnett files for divorce from Amy Poehler
  • American rapper cuts own penis, jumps off building
  • Jay Z to bring Made in America music fest to LA
  • Business

  • Total says makes ‘very promising’ oil find off Ivory Coast
  • ‘Chinese Twitter’ firm Weibo to go public in US
  • World stocks subdued, Nikkei flat on profit taking
  • Asia stocks fail to match Wall Street gains
  • Fired Yahoo exec gets $58M for 15 months of work
  • Technology

  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Filipinos #PrayForSouthKorea
  • Taylor Swift tries video blogging, crashes into fan’s bridal shower
  • DOF: Tagaytay, QC best at handling funds
  • Smart phone apps and sites perfect for the Holy Week
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Malaysia quarantines 64 villagers over MERS virus
  • DFA: 2 Filipinos survive Korean ferry disaster
  • PH asks airline passengers to check for MERS
  • Syria most dangerous country for journalists, PH 3rd—watchdog
  • Japan says visa-free entry still a plan
  • Marketplace