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- BDO Unibank, Inc. (BDO) – Analysis – 11 May 2018 - May 12, 2018
MANILA, Philippines – BDO Unibank Inc. (BDO), the country’s largest bank, registered a P19.3 billion income, which is a double-digit earnings increase.
Henry Sy, the bank magnate owning BDO by retail, stated that its P19.3 billion returns increased by 10 percent compared to the P17.6 billion of last year of the same period.
The booked income is the nine-month earnings of the bank as solid results were delivered by its core businesses. Its core segments have assisted in normalizing the treasury activities’ contribution.
Central lending, fee-based, and deposit-taking segments of the bank have contributed to the bank’s upstanding results, disclosed by the bank to the Philippine Stock Exchange (PSE).
From its last year booking of P25.05 billion of net income, the financial firm sees this will climb this year to a record of P26 billion.
Net interest income, on the other hand, increased from P41.8 billion to P48.4 billion, which is a rise by 16 percent.
In the first nine months, customer loan portfolio of BDO increased from P1.2 trillion of last year to P1.4 trillion. This is brought by the segment’s growth, which encompasses all market areas.
Total deposits also climbed up to P1.8 trillion from P1.6 trillion, which is a 14 percent increase. This is in line with 21 percent rise in savings account deposits and low-cost checking.
There is 15 percent increase from P13.9 billion last year to P16 billion from January to September for the bank’s fee-based service income.
Bank’s trading and foreign exchange income was perpetrated from P6.3 billion to P4.5 billion.
In operating expenses, the bank recorded a 29 percent increase, which is equivalent to P52.8 billion. Its compensation centered on consolidation of BDO Life Insurance and One Network Bank (ONB) operations.
Even as asset quality remained steady, the bank allocated P2.6 billion in provisions. At 1.3 percent, its gross non-performing loan (NPL) stabilized, whereas NPL coverage maintains its far up standing at 143 percent.
Capital base of BDO increased by 12.2 percent from P192 billion to P215.4 billion.
The bank’s Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) maintained their positions above the current minimum regulated by Basel III framework and the Bangko Sentral ng Pilipinas (BSP).