• BDO confident of P22.8-B 2014 net income target


    Henry Sy-led BDO Unibank Inc. said it is on track to achieve its full-year net income target of P22.8 billion after it posted 41-percent growth in net profit for the third quarter from a year earlier.

    BDO said the 41-percent surge to P5.7 billion in its third quarter net income came on sustained earnings from commercial banking businesses.

    The bank said its year-to-date net income amounted to P16.8 billion, which is lower than the P18.2 billion a year ago on one time extraordinary gains in early 2013.

    As of end-September, the bank booked a 21 percent increase in net interest income to P37.5 billion from last year’s P31 billion. The increase was due to a 19-percent advance in deposits (P1.4 trillion) and 22-percent gain in customer loans (P1.03 trillion).

    Non-interest income, however, declined to P21.8 billion from P25.8 billion in the same nine-month period last year.

    For the same period, its non-performing loan (NPL) ratio dropped to 1.4 percent from last year’s 2.4 percent. This improved its NPL coverage ratio to 184 percent from 152 percent a year ago.

    BDO said it continues to be well capitalized with a consolidated capital adequacy ratio of 14.1 percent, above the 10 percent minimum, and a common equity Tier 1 ratio of 12.7 percent under the Basel III regime, or above the 8.5 percent minimum.

    BDO is the banking arm of the SM Group. The group, through its holding firm SM Investments Corp., also has businesses in property (SM Prime Holdings Inc.) and retail (SM Retail Inc.), as well as other affiliates such as China Banking Corp., Premium Leisure Corp. and Belle Corp., among others. Kristyn Nika M. Lazo


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