Sy-led BDO named ‘strongest bank’ in PH

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MANILA, Philippines–The Sy family-led BDO Unibank is the strongest bank in the Philippines, according to Singapore-based financial publication The Asian Banker.

According to The Asian Banker 500 Strongest Bank by Balance Sheet Ranking 2014, BDO topped the roster of Philippine banks based on the six parameters used by the publication—scale of operations, balance sheet growth, risk management, profitability, asset quality and liquidity.

“BDO Unibank demonstrated overall strength and growth of its balance sheet with improvements to its profitability, while keeping [nonperforming loans] in control and overall capital strength,” said Foo Boon Ping, managing editor of The Asian Banker.

The magazine said the country’s banking sector in general remained stable as consumption-led demand continued to thrive, adding that the sustained expansion in bank lending reflected the strong performance of the domestic economy.

Also cited was the local banking industry’s relatively low non-performing loan ratio, suggesting that sustained loan growth may not have yet come at the expense of credit quality.

BDO, a banking arm of the Sy family-led SM Investments Corp., is the Philippines’ largest bank in terms of total resources, loans, deposits and assets under management. The bank posted a net profit of P11.05 billion in the first semester, declining by 22 percent year on year but attaining close to half of its full-year goal. This represented a 19-percent year-on-year growth on a core operating basis.

BDO has set a full year net profit guidance of P22.8 billion, a new high for the bank despite a more challenging treasury business this year.