BDO Unibank, Inc. (BDO)
P32.1 billion in net income
for the first nine months of the year compared to P21.5 billion a year-ago, largely driven by the expansion in the
Bank’s recurring core revenues. The 9M19 net income translates to a Return
on Common Equity (ROCE) of 12.5 per cent, compared to 9.5 per cent in 9M18.
Customer loans increased
by six (6) per cent year-on-year (yoy) to
trillion, led by the sustained growth in the middle-market and consumer segments.
Meanwhile, total deposits went up by three (3) per cent yoy to P2.4 trillion, with low-cost Current
Account/Savings Account (CASA) deposits increasing by six (6) per cent and accounting
for 72 per cent of total deposits.
Net Interest Income
(NII) increased yoy to
with net interest margins (NIMs) further improving in 3Q19.
Non-interest Income went
up yoy to
P44.1 billion, led by
fee-based income and insurance premiums which accelerated by 14 per cent and 23
per cent to P25.4 billion and P10.8 billion, respectively. Trading and foreign
exchange gains in 3Q19 amounted to P690
million from P1.0 billion year-ago.
However, the trading and forex gains of P4.3
billion for the nine-month period reflects a normalized level compared to 2018,
where a more volatile environment prevailed. As such, gross operating income
rose to P132.6 billion.
Operating expenses rose
by 20 per cent to
P85.8 billion given
the Bank’s continuing expansion as well as increased volume-related expenses
(e.g., taxes and licenses and policy reserves at BDO Life were up by an
aggregate 42 per cent yoy). Excluding volume-related expenses, operating
expenses would have risen by 14 per cent.
Provisions amounted to
P4.2 billion as the Bank maintained its
conservative credit and provisioning policies. Gross non-performing loan (NPL)
ratio was steady at 1.2 per cent, while NPL cover remained high at 168.2 per
The Bank’s capital base increased to
billion, with Common Equity Tier 1 (CET1) and Capital Adequacy Ratio (CAR) improving
to 13.1 per cent and 14.6 per cent, and remaining comfortably above the current
regulatory minimum under the Basel III framework.
With its focused growth strategy, strong business franchise, solid balance sheet and extensive geographic reach, the Bank remains solidly positioned to capitalize on the country’s solid economic pace and growth opportunities in underserved and emerging markets.
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 and investments, investment banking, private banking, rural banking, cash management, leasing and finance, remittance, insurance, retail cash cards, credit card services and stock brokerage services.
BDO has one of the largest distribution networks, with more than 1,300 operating branches and over 4,400 ATMs nationwide. It also has full-service branches in Hong Kong and Singapore as well as 21 overseas remittance and representative offices 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 June 30, 2019. For more information, please visit www.bdo.com.ph.