BDO nets P11 billion in first half of 2014

FILE PHOTO

MANILA, Philippines — Banco de Oro Unibank posted a net profit of P11.05 billion in the first semester, down 22 percent year-on-year but close to half of the bank’s full-year goal.

In a disclosure to the Philippine Stock Exchange, BDO said the six-month net profit fell compared to last year due to extraordinary income booked in the first half of 2013. However, BDO  noted that excluding non-recurring items, the first semester’s income represented a 19-percent year-on-year growth.

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

Building its durable earnings stream, BDO’s net interest income grew by 24 percent year-on-year to hit P24.7 billion, on the back of a 21 percent growth in customer loans. BDO’s gross customer loans was estimated at P975.1 billion.

On the other hand, total deposits ended the semester at P1.37 trillion, equivalent to a 35 percent year-on-year growth rate.

With 17 new branches as of the second quarter, BDO said continued branch expansion enabled it to sustain growth in low-cost current account and savings account (CASA) deposits and effectively reduce its cost of funds.

Trading and foreign gains reached P4.2 billion for the first half of this year, less than half of the P8.8 billion windfall in the same period last year. Fee-based income, however, expanded to P8.3 billion compared to last year’s P6.38 billion.

Operating expenses increased to P24.2 billion compared to P21 billion in the same period last year.

RELATED STORY

BDO reports net income of P22.6 B in 2013