BDO Unibank Inc., the country’s largest lender controlled by the Sy family, said Tuesday net income jumped 17 percent in 2018 to a record P32.7 billion from P28.1 billion in 2017, on the sustained strength of its core businesses.
BDO said in a disclosure to the stock exchange the 2018 net profit also surpassed the P31-billion guidance set by the bank for the year.
“The bank likewise capped another milestone as the first Philippine bank to breach the P3-trillion mark in total assets,” the bank said.
“Leading the bank’s performance was the solid growth in its core lending and deposit-taking businesses,” it said.
“BDO is well positioned to take advantage of market opportunities and strengthen its leadership position in the industry by leveraging on its strong business franchise and extensive distribution network,” it said.
Gross customer loans rose 15 percent to P2 trillion on healthy increases across all segments, while total deposits went up 14 percent to P2.4 trillion, with the low-cost Casa ratio at 70 percent.
This resulted in the 20-percent expansion in net interest income to P98.3 billion as net interest margin improved to 3.64 percent from 3.48 percent in 2017.
Non-interest income reached P49.7 billion, with fee-based income contributing P30.7 billion and insurance premiums up 20 percent. Overall, gross operating income grew 15 percent to P148 billion.
Operating expenses increased 16 percent to P98 billion, in line with the bank’s sustained investments in branch network and strategic initiatives.
The bank said excluding taxes and licenses which grew 41 percent as a result of higher business volumes and increased documentary stamp taxes under the Tax Reform for Acceleration and Inclusion law, operating expenses would have grown by 13 percent.
The bank remained prudent and set aside P6.3 billion in provisions even as non-performing loans ratio improved to 1 percent from 1.2 percent in the fourth quarter of 2017. NPL cover was higher at 183 percent compared to 146 percent a year ago.
The bank’s capital base reached P328.1 billion, with capital adequacy ratio and common equity tier 1 ratio at 13.7 percent and 12.1 percent, respectively, both above regulatory levels.
BDO has more than 1,200 consolidated operating branches and more than 4,000 ATMs nationwide. It also has 24 overseas remittance and representative offices, including full-service branches in Hong Kong and Singapore 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 Dec. 31, 2018.
