BDO Unibank, Inc. (BDO)
recorded a net income of P44.2 billion
in 2019 from P32.7 billion in 2018 on
the strong performance of its core recurring income sources. The results exceeded the Bank’s P38.5
billion guidance and translate to a Return on Common Equity (ROCE) of 12.8 per
cent from 10.7 per cent the year before.
Net interest income went
up to P119.9 billion from P98.3 billion. Net Interest Margin (NIM) improved on
continued CASA growth and improving loan mix in favor of consumer and middle
market customers. Customer loans rose by nine (9) per cent to P2.2 trillion on broad-based growth across
market segments. Total deposits grew by three (3) per cent to P2.5 trillion, bolstered by the eight (8)
per cent increase in low-cost Current Account/Savings Account (CASA) deposits
that comprised 73 per cent 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, as well as 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 (NPL) ratio was steady at 1.2 per cent and NPL
cover remained high at 164.7 per cent.
Total capital base increased to P370.6
billion, with Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1)
ratio at 14.2 per cent and 12.7 per cent, 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.
