BDO Unibank Inc., the country’s biggest lender controlled by retail tycoon Henry Sy, aims to increase net profit in 2017 by 10 percent to P28.810 billion from the 2016 projection of P26.129 billion amid the robust domestic economy that will sustain the expansion of core businesses.
BDO posted a net income of P19.321 billion in the first nine months. Net profit in 2015 stood at P25.055 billion.
BDO in a projection posted on the Philippine Stock Exchange web site said it expects net interest income next year to grow 16 percent to P76.556 billion from an estimate of P65.780 billion this year. Data showed actual net interest income in the nine-month period this year reached P48.449 billion.
Other operating income is expected to reach P42.784 billion next year, up from the 2016 target of P40.929 billion. Other operating income as of end-September reached P31.275 billion.
Total assets next year are expected to reach P2.6 trillion, up from P2.28 trillion projection for this year. Total assets as of end-September 2016 hit P2.207 trillion.
Total liabilities are seen to grow to P2.273 trillion, up from P2.058 trillion in the 2016 projection. Actual total liabilities as of the third quarter stood at P1.992 trillion.
“Growth for the rest of the year and 2017 is expected to remain healthy, supported by the increased infrastructure spending and sustained consumer demand on the back of steady overseas Filipino workers remittances and increasing BPO revenues,” BDO said.
The economy grew 7.1 percent in the third quarter, bringing the first three months’ average to 7 percent, the upper bound of the Duterte administration’s target range of 6 percent to 7 percent this year.
BDO is expected to start soon its P60-billion worth of stock rights offering after securing the approval of the Philippine Stock Exchange. Bangko Sentral ng Pilipinas cleared the issuance on Nov. 23, 2016.