• BDO 2Q profit more than double to P14B


    The banking arm of Henry Sy-led SM Investments Corp. has more than doubled its first-half profit as it saw significant gains in each of its business segments.

    A disclosure to the Philippine Stock Exchange on Monday showed that BDO Unibank Inc. 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.

    The bank reported that all of its business segments registered strong performance, which is enough to push the company’s profit to a record high.

    Gross customer loans of BDO went up by 12 percent to P806.6 billion, while total deposits grew by 17 percent to P1 trillion on the sustained increase in low-cost deposits. This, in turn, resulted in the 14-percent expansion in net interest income of the bank to almost P20 billion.

    Moreover, BDO’s noninterest income went up by 81 percent 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.

    Notwithstanding the sustained decline in its gross nonperforming loan (NPL) ratio to 2.4 percent by end-June 2013, the bank also accelerated its provisions to P4 billion to raise its NPL coverage ratio to 148 percent, reflective of its conservative provisioning policy. BDO also remained well capitalized with a capital adequacy ratio and Tier 1 capital ratio of 18.3 percent and 15.6 percent, respectively.

    “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,” the company further said.

    The net income of BDO in the January to March period surged by 257 percent to P10 billion from P2.8 billion in the same quarter last year.


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