BDO’s income surged 35% to P44.2b in 2019

BDO Unibank Inc., the largest lender controlled by the Sy family, said Thursday net income jumped 35 percent in 2019 to an all-time high of P44.2 billion from P32.7 billion in 2018 on the strength of core businesses.

BDO said in a statement the strong performance exceeded the P38.5-billion profit guidance for 2019 and translated into a return on common equity of 12.8 percent, up from 10.7 percent a year ago.

Net interest income rose to P119.9 billion from P98.3 billion. Net interest margin widened on continued CASA (current and savings account) growth and improving loan mix in favor of consumer and middle market customers. 

Customer loans increased 9 percent to P2.2 trillion, on broad-based growth across market segments. Total deposits grew 3 percent to P2.5 trillion, bolstered by the 8-percent increase in low-cost CASA deposits that comprised 73 percent of total deposits.

Non-interest income reached P60.6 billion, led by fee-based income with P35.3 billion and insurance premiums with P14.8 billion. Trading and forex gains settled at P5.7 billion.  Overall, gross operating income went up to P180.5 billion.

Operating expenses amounted to P115.2 billion in line with the bank’s continuing business and network expansion and higher volume-related expenses (specifically, taxes and licenses and policy reserves at BDO Life). 

The bank maintained its conservative credit and provisioning policies, setting aside P6.2 billion in provisions, even as gross non-performing loan ratio was steady at 1.2 percent and NPL cover remained high at 164.7 percent.

Total capital base increased to P370.6 billion, with the capital adequacy ratio and common equity tier 1 ratio at 14.2 percent and 12.7 percent, respectively, both comfortably above regulatory levels.

“Moving forward, BDO’s robust business franchise, extensive distribution network, solid balance sheet and focused growth strategy place the bank in an advantageous position to tap growth opportunities and development thrusts in line with government priorities while remaining resilient to domestic and external challenges,” the bank said. 

BDO is a full-service universal bank which provides a wide range of corporate and retail banking services.  These services include traditional loan and deposit products, as well as treasury, trust banking, investment banking, private banking, rural banking, cash management, leasing and finance, remittance, insurance, retail cash cards and credit card services.   

BDO has the country’s largest distribution network, with over 1,400 consolidated operating branches and more than 4,400 ATMs nationwide.  

It also has 22 overseas remittance and representative offices (including full-service branches in Hong Kong and Singapore) in Asia, Europe, North America and the Middle East. 

Topics: BDO Unibank Inc. , net income
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