BDO Unibank Inc., the largest lender in terms of assets and controlled by tycoon Henry Sy, will declare cash dividends on its preferred shares “A” amounting to P339.399 million.
BDO said in a disclosure to the stock exchange Monday its board approved the planned cash dividends at its regular meeting held on Jan. 27, 2018.
The bank said the dividends would have a “rate of 6.5 percent per annum of the par value, for a total dividend amount of P339,399,305.56, payable within 60 banking days from declaration date.”
The bank in the fourth quarter last year also declared regular cash dividends on common shares after realizing surplus profits in the first nine months of 2017.
BDO posted a net income of P20.4 billion from January to September 2017, up 5 percent year-on-year, driven mainly by the sustained growth in core lending, deposit-taking and fee-based businesses.
Net income would have grown by 17 percent after excluding extraordinary items primarily related to the consolidation of its life insurance business (BDO Life) in 2016.
Net interest income rose 23 percent to P59.8 billion on the back of the 18-percent increase in customer loan portfolio to P1.7 trillion as broad-based expansion was seen across all market segments.
Asset growth was funded by the 15-percent hike in total deposits to P2.1 trillion, buoyed by the 20-percent increase in current account/savings account or CASE, representing 73 percent of total deposits.
Non-interest income climbed 9 percent to P34.8 billion. Fee-based income expanded 30 percent to P20.8 billion, insurance premiums were up by 19 percent to P7.2 billion, while trading and foreign exchange income, as expected, fell 26 percent to P3.3 billion.
Operating expenses increased 20 percent to P63.6 billion. But on a comparable basis net of extraordinary items, operating expenses would have risen by just 13 percent, in line with the bank’s continued business expansion.