SY-LED BDO Unibank said on Thursday its net income in the first quarter of 2017 rose 6 percent to P5.8 billion from P5.5 billion in the previous year, fueled by strong growth in net interest income and customer loans.
In a disclosure to the Philippine Stock Exchange (PSE), BDO said its net interest income remained the major earnings driver, rising by 19 percent to P18.4 billion, while customer loans accelerated by 21 percent to P1.5 trillion, with all market segments turning in robust expansion rates.
Total deposits grew by 13 percent to P1.9 trillion, fuelled by 17 percent growth in low-cost CASA (current account and savings account) deposits.
Other income, led by fee-based service income from payments and settlements, credit card acquiring fees and wealth management services, increased by 42 percent to P6.8 billion while insurance premiums further added P2.2 billion. But trading and foreign exchange gains dropped 4.0 percent to P1.4 billion.
In 2016, BDO launched its online stock trading services BDO Nomura, strengthened its life insurance business BDO Life, and expanded its rural banking platform One Network Bank (ONB), resulting in the bank’s strong performance results across its core businesses.
“The bank continued to set aside provisions amounting to P1.4 billion for the quarter even as asset quality remained healthy with NPL (non-performing loan) ratio unchanged at 1.3 percent and NPL cover at 138 percent,” BDO said.
Meanwhile, the successful completion in January this year of the bank’s rights offer, which generated a total of P60 billion in fresh capital bolstered the bank’s capital base to P282 billion and enhanced its capital adequacy ratio (car) and common equity tier 1 (CET1) to 15.6 percent and 14.0 percent, respectively.
“With a strengthened capital base, robust business franchise and extensive distribution network, BDO is well-positioned to benefit from the country’s growth momentum,” the company said.
BDO is a full-service universal bank owned by the SM Group. It has one of the largest distribution networks with more than 1,000 operating branches nationwide.