Makati—(PHStocks)—BDO Unibank Inc. (PSE: BDO) delivered a net income of PhP26.1 billion in 2016 on the back of strong results across its core businesses. This matched the bank’s earnings guidance for last year and is a record net income for the bank.
Customer loan portfolio increased by 16 percent to PhP1.5 trillion, while total deposits rose by 15 percent to P1.9 trillion on the sustained growth in the Bank’s low-cost CASA deposits. Net interest income went up by 15 percent to PhP65.6 billion, reflecting the quality growth in the loan portfolio.
Meanwhile, fee-based income grew by 15 percent to PhP22.2 billion and insurance premium contributed PhP8 billion, as the Bank’s efforts at diversifying its income stream start to bear fruit. These fee income sources compensated for the decline in trading gains to PhP4.8 billion. Overall, gross operating income settled at PhP107.2 billion.
The bank’s operating expenses advanced by 27 percent to PhP70.1 billion, primarily reflecting the consolidation of One Network Bank (ONB) and BDO Life Insurance. Excluding these, operating expenses would have risen only by 11 percent.
The bank set aside PhP3.8 billion in provisions for the year even as gross non-performing loan (NPL) ratio held steady at 1.3 percent while NPL cover remained high at 139 percent.
The bank’s capital base stood at PhP217.5 billion, with Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) ratio at 12.4 percent and 10.7 percent, respectively. In January 2017, the bank successfully completed its rights offer, raising a total of PhP60 billion ($1.2 billion) in fresh capital and boosting the Bank’s consolidated CAR to an estimated 15.7 percent. This will allow the Bank to support its medium-term targets and provide a comfortable buffer over higher minimum capital requirements with the staggered implementation of the Domestic Systemically Important Bank (DSIB) surcharge.
With a strengthened capital base, robust business franchise and extensive distribution network, BDO is well-positioned to benefit from the country’s growth momentum.
BDO is a full-service universal bank which provides a wide range of corporate and retail banking services. These services include traditional loan and deposit products, as well as treasury, trust banking, investment banking, private banking, rural banking, cash management, leasing and finance, remittance, insurance, retail cash cards and credit card services.
BDO has one of the largest distribution networks, with more than 1,100 operating branches and over 3,600 ATMs nationwide. It also has 26 overseas remittance and representative offices (including one full-service branch in Hong Kong) in Asia, Europe, North America and the Middle East.
BDO ranked as the largest bank in terms of total assets, loans, deposits and trust funds under management based on published statements of condition as of December 31, 2016. For more information, please visit www.bdo.com.ph.