BDO's net income more than doubled to P14.1b

Total deposits broke the 1 trillion mark.

According to a release, BDO Unibank, Inc. (BDO) more than doubled its net income to P14.1 billion in the first half of 2013 from P5.8 billion in the same period last year.

Driving the Bank’s record profits for the period was the strong performance across all business segments.

Gross customer loans went up by 12 per cent to P806.6 billion while total deposits broke the 1 trillion mark, growing by 17 per cent to P1.02 trillion on the sustained increase in low-cost deposits.

This resulted in the 14 per cent expansion in net interest income to almost P20 billion. The Bank’s non-interest income increased by 81 per cent to P20.3 billion, driven by fee-based service income of P7.6 billion, as well as exceptional gains from trading and foreign exchange activities despite the market volatility in late June. Meanwhile, the Bank held the growth in operating expense steady at 9 per cent.

Notwithstanding the sustained decline in its gross non-performing loan (NPL) ratio to 2.4 per cent by end-June 2013, the Bank accelerated its provisions to P4.0 billion to raise its NPL Coverage ratio to 148 per cent, reflective of its conservative provisioning policy.

As of end-June 2013, BDO remained well capitalized with a Capital Adequacy Ratio (CAR) and Tier 1 Capital ratio of 18.3 per cent and 15.6 per cent, respectively, well above the regulatory minimum.

With record earnings for the period already representing more than two-thirds of its P20.4 billion guidance for 2013, the Bank is optimistic of hitting its year-end targets as it expands its businesses while nimbly responding to market challenges.