BDO Unibank Inc., the country’s largest lender controlled by the Sy Group, said Tuesday it signed a business alliance with Resona Bank Group of Japan that will allow it to tap and support the banking needs of the latter’s clients operating in the Philippines.
BDO said in a statement the agreement was formalized through a memorandum of understanding effective Dec. 21, 2021.
Resona is the fourth largest universal city bank with full-line trust and real estate capabilities in Japan. Its strong customer base is centered primarily in the Tokyo metropolitan area and the Kansai area, where economic activity and population are concentrated.
Its business alliance deal with BDO will be participated in by Resona’s affiliated banks, including Resona Bank Ltd., Saitama Resona Bank Ltd., Kansai Mirai Bank Ltd. and Minato Bank Ltd. Resona is the latest in the list of Japanese financial institutions that teamed up with BDO, given the local bank’s strong position in the Philippine banking sector.
“For BDO, the partnership with Resona can potentially increase its support to Japanese companies doing business in the country, particularly those located in various industrial zones,” BDO said.
BDO, the country’s largest bank by total assets, loans, deposits, trust funds and capitalization, has a reputable Japan Desk dedicated to support Japanese companies operating in the country and help provide the bank requirements of Japanese clients.
BDO’s earnings returned to pre-pandemic levels after it posted a 95-percent growth in net income in the first nine months to P32.4 billion from P16.6 billion a year ago. With this performance, it surpassed the 2020 net income of P28.2 billion that was pulled down by pre-emptive provisions of P30.2 billion against potential delinquencies from the pandemic.
BDO said in a statement the expansion in the first three quarters was driven by its resilient business franchise and normalized provisions. It said the business outlook “turns positive with increasing vaccination rates and improving mobility.”
Gross customer loans outpaced the industry with a 5-percent year-on-year increase while total deposits went up by 6 percent, driven by the 14-percent expansion in current account/savings account deposits that now comprise 85 percent of total deposits.
Non-interest income increased by 13 percent year-on-year, while trading and forex gains normalized to P2.8 billion.