Sy-led bank running short of 2015 target of P25.1B
BDO Unibank Inc., the listed commercial bank arm of the Sy family, saw its net income increase by 5.38 percent in the first nine months of the year on the back of gains in core business.
Its net income climbed by 5.38 percent to P17.6 billion in January to September compared with P16.7 billion a year earlier on expansions of core businesses despite a difficult business environment during the period.
With its financial results in the first nine months of the year, BDO is running short of its net income target of P25.1 billion for the whole 2015.
In July, the bank said it capped off the acquisition of One Network Bank which added over P20 billion to BDO’s total loans and deposits.
During the nine-month period, net interest income increased by 12 percent to P41.8 billion from P37 billion. This was made possible by the double-digit growth in loans and deposits.
BDO said its loans increased by 19 percent to P1.2 trillion from P1 trillion year-on-year on the sustained performance in the target markets. Total deposits rose by 12 percent to P1.6 trillion from P1.42 trillion due to a 16 percent increase in low-cost deposits.
Fee based income reached P13.9 billion while trading and foreign exchange income stood at P6.3 billion. BDO said its overall gross operating income increased by 11 percent to P65.6 billion.
Total expenses also went up by 11 percent to P51 billion from P45.894. Its gross non performing loan (NPL) ratio stood at 1.2 percent from 1.4 percent last year while the NPL coverage is at 182 percent after the consolidation of One Network Bank.
BDO has a total capital base of P192 billion in January to September. Its capital adequacy ratio (CAR) and common equity tier 1 (CET 1) ratio stood at 13.4 percent and 11.4 percent, respectively, which are above the minimum requirement of the Basel 3 framework.