BDO nets record P18.2B profit in Jan-Sept

MANILA, Philippines – The banking arm of tycoon Henry Sy, the country’s richest, announced an P18.2 billion net income in the first 9 months of 2013.

This is a record high for BDO Unibank, the country’s biggest bank.

Its January-to-September net income was up a significant 73% from P10.5 billion a year ago. This growth is slower than the 143% posted in January-to-June period and the massive 257% growth in the first quarter. 

“Our core business continued to deliver very good numbers despite pressures from excess system liquidity and capital market volatility,” BDO president Nestor Tan said in a disclosure to the stock exchange Tuesday, October 29.

This means the unibank is on track to hit its full year profit guidance of P20.4 billion.

Below is a summary of the financial performance of BDO during the period:

• Net interest income reached P31 billion, with loans and deposits contributing to the 16% increase 
• Non-interest income was ups 36% to P25.8 billion on double-digit expansion in both fee-based income and trading and foreign exchange gains
• Operating expense growth was steady at 8%
• Non-performing loan (NPL) ratio declined to 2.4% by end-September
• NPL coverage ratio reached 152% with P5.1 billion provisions set aside
• Capital adequacy ratio (CAR) and Tier 1 Capital ratio were at 17.1% and 15.3%, respectively, at end-September, above regulatory minimum and above Basel III requirements

BDO has over 790 branches and 2,100 ATMs nationwide.

It is the country’s largest in terms of loans, assets, deposits, capital and trust funds as of June 30. Trailing behind it are Metrobank of tycoon George Ty and Bank of the Philippine Islands (BPI) of the Ayala family.

FinanceAsia magazine, which caters to the elite financial community, awarded BDO as the “Best Asian Bank” for 2013 in September. – Rappler.com