BDO Unibank Inc., the biggest lender in terms of assets and controlled by the Sy family, is declaring cash dividends on common shares for the second quarter this year after posting a record net profit of P32.7 billion in 2018.
The bank said in a disclosure to the stock exchange Monday the declaration of cash dividends was approved by the board in a meeting held Saturday.
“… The board of directors of BDO Unibank, Inc., at its regular board meeting held May 25, 2019, approved the declaration of regular cash dividends on common shares of BDO in the amount of P0.30 per share for the second quarter of 2019 payable on June 24, 2019 to all stockholders of record as of June 11, 2019,” the bank said.
It said the source of dividend payment was the “surplus profits of the bank as of December 2018 [net of previously issued dividends less capital adjustments per relevant regulations].”
BDO’s net income in 2018 jumped 17 percent to a record P32.7 billion from P28.1 billion in 2017 on the sustained strength of its core businesses. The 2018 net profits also surpassed the P31-billion guidance set by the bank for the year.
The bank also capped another milestone as the first Philippine bank to breach the P3-trillion mark in total assets.
Gross customer loans rose 15 percent to P2 trillion on healthy increases across all segments, while total deposits increased 14 percent to P2.4 trillion, with low-cost CASA ratio at 70 percent.
This resulted in the 20-percent expansion in net interest income to P98.3 billion on better net interest margins. The bank’s net interest margin improved to 3.64 percent from 3.48 percent in 2017.
Non-interest income settled at P49.7 billion, with fee-based income contributing P30.7 billion and insurance premiums up 20 percent. Gross operating income rose 15 percent to P148 billion.
Operating expenses amounted to P98 billion, 16 percent higher than a year ago, in line with the bank’s sustained investments in branch network and strategic initiatives.
Excluding taxes and licenses, which grew by 41 percent as a result of higher business volumes and increased documentary stamp taxes under the TRAIN Law, operating expenses would have grown by 13 percent.