MANILA, PHILIPPINES – Despite a volatile financial environment abroad and slower than expected GDP growth, the Philippines’ largest bank by assets posted a 19% growth in audited net income.
BDO Unibank Inc. (BDO) grew its net income to P10.5 billion in 2011 from P8.8 billion in 2010
In a statement released to the Philippine Stock Exchange, BDO attributed the growth to an expanded loan porfolio, a decline in non-performing loans as well as trading and foreign exchange gains.
By focusing on creditworthy borrowers in fast-growing industries, the bank was able to grow its loan portfolio by 24%, outpacing the industry average of 19% loan growth.
Its non-performing loan (NPL) ratio dropped to 3.4% in 2011, down from 4.7% in 2010. While the bank generated a 10% increase in trading and foreign exchange gains.
In its statement to the PSE, BDO said it would continue to look for promising growth opportunities across industries while positioning defensively against external threats.
Profits from BDO account for over 49.5% of the Sy-led listed holding firm’s income in 2011.
SM Investments Corp reported profits of over P21 billion during the year.