BDO boosts 1H income by 15%
By Doris C. DumlaoPhilippine Daily Inquirer
MANILA, Philippines – BDO Unibank grew its first semester net income by 15 percent year-on-year to P5.83 billion on higher interest and non-interest income.
With this half-year result, BDO said it was on track to meet its full year profit guidance of P12.5 billion, reflecting a bottomline growth goal of 19 percent.
“The bank continued to strengthen its business franchise and distribution network, leading to an expanded loan portfolio, growing low-cost deposits and higher recurring fee-based service income,” the bank said in a disclosure to the Philippine Stock Exchange on Monday.
Six-month net interest income increased by 2 percent to P17.4 billion year-on-year on robust loan growth and the continued hike in low-cost deposits.
Gross customer loans expanded by 18 percent to P719 billion, as growth was seen across all segments.
Total non-interest income ended at P11.2 billion, up by 7 percent from last year. Fee-based service income contributed P6.8 billion, while trading and foreign exchange gains stood at P3.2 billion
“The bank remains optimistic about the country’s prospects and opportunities in the banking sector,” the disclosure said.
BDO recently raised P43.5 billion (equivalent to over $1 billion) in core capital through a rights offer last July to support its medium-term growth objectives and meet the Basel III capital requirements ahead of schedule.
“Part of the proceeds from the additional capital will be utilized by the Bank to exercise its early redemption option on P10 billion of higher-cost tier 2 debt in November 2012,” the disclosure said.
Operating expenses increased moderately to P19.4 billion, while P2.5 billion in provisions were booked for the semester.
Asset quality improved with gross non- performing loan (NPL) ratio declining to 3.1 percent from 3.5 percent in the previous quarter, while gross NPL coverage rose to 119 percent from 110 percent.
Follow Us
Recent Stories:
Short URL: http://business.inquirer.net/?p=74125
Tags: BDO , Business , economy , Philippines , profits
