Makati—(PHStocks)—BDO Unibank Inc. (PSE: BDO) delivered a net income of PhP17.6 billion in the first nine months of 2015, higher than the PhP16.7 billion posted in the comparable period last year on the solid expansion of its core businesses despite the challenging operating environment.
BDO’s lending operations picked up pace with a 19% increase in gross customer loans to PhP1.2 trillion on sustained growth across its target markets. Likewise, the bank’s total deposits rose by 12% to PhP1.6 trillion, led by the 16% hike in low-cost deposits. As such, net interest income rose by 12% year-on-year to PhP41.8 billion.
The 3Q results now incorporate the completion of BDO’s acquisition of One Network Bank (ONB) in July this year, thereby adding over PhP20 billion to BDO’s total loans and deposits.
The bank’s fee-based service income contributed PhP13.9 billion to non-interest income, followed by trading and foreign exchange income at PhP6.3 billion. Overall, the Bank’s gross operating income went up by 11% to PhP65.6 billion.
Despite increased business volumes and sustained branch expansion, BDO managed the growth of its operating expenses at 11%.
The bank continued to prudently manage its balance sheet and set aside provisions amounting to PhP2.7 billion. Gross non-performing loan (NPL) ratio stood at 1.2% vs. 1.4% a year-ago while NPL cover settled at 182%, after the consolidation of ONB.
The bank’s total capital increased to PhP192 billion, with both the Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) ratio comfortably above the regulatory minimum under the Basel III framework at 13.4% and 11.4%, respectively.
BDO’s robust business franchise, focused growth strategy and solid capital base place the bank in a good position to tap growth opportunities while remaining resilient amid domestic and external challenges.