BDO profits soar 143% to P14-B in Jan-June
MANILA, Philippines — BDO Unibank Inc., the banking arm of the Sy-led SM Group, has more than doubled its earnings in January-to-June to P14.1 billion from the P5.8 billion a year ago.
The country's largest bank in terms of assets cited strong business in its 143% profit growth in the first 6 months, already hitting two-thirds of its 2013 target of P20.4 billion.
Despite the market volatility in June, BDO scored made gains from trading and foreign exchange.
Here is a summary of the bank's financial performance at end-June 2013:
- Gross customer loans – P806.6 billion, up by 12%
- Total deposits - P1.02 trillion in low-cost deposits, up by 17%
- Net interest income - almost P20 billion, up by 14%
- Non-interest income - P20.3 billion
- Operating expense - stable at 9%
- Gross non-performing loan (NPL) ratio - down by 2.4%
- Capital Adequacy Ratio (CAR) and Tier-1 Capital ratio - 18.3% and 15.6%, respectively
In a disclosure to Philippine Stocks Exchange on Monday, July 29, BDO said the early redemption of the bank's Tier-2 Capital Series 3, 4 and 5, amounting to P18 billion, has been approved by its Board. The redemption date for each series is yet to be announced.
Under the new Basel-3 guidelines taking effect in January 2014, Tier-2 issues will not be considered as capital.BDO said these Tier-2 issues will not qualify as capital under the new Basel-3 guidelines that will take effect in January next year. - Rappler.com