BDO Unibank Inc., the banking arm of the Henry Sy-led SM Investments Corp., will try to achieve a record profit of P22.8 billion for the full year despite seeing its first-quarter income drop by almost half from a year earlier.
At its annual stockholders meeting on Friday, BDO president Nestor Tan said the bank’s earnings guidance for this year is P22.8 billion, slightly higher than its record profit of P22.6 billion in 2013.
Tan said that while the figure is almost flat compared to 2013, it reflects the replacement of one-time trading gains earned in 2013 with high quality earnings derived from the bank’s core businesses, indicating the sustainability of the bank’s business franchises.
Tan said the bank’s first-quarter net income was recorded at P5.5 billion, down 46 percent from the same period last year in the absence of significant trading gains.
However, first-quarter net interest income grew 27 percent year-on-year, continuing to be the main earnings driver at P12.2 billion. The bank’s total deposit base currently stands at over P1.3 trillion, making it the country’s largest lender by assets.
BDO’s net income last year topped its P20.4 billion earnings guidance and was 56 percent higher than the P14.5 billion profit it recorded in 2012.
Tan said the bank’s outstanding performance was attributed to increased earnings from its core businesses, mainly lending and deposit-taking and fee-based services, accompanied by notable trading gains.
In total, the listed bank opened 52 new branches in 2013, and followed this up with eight new branches so far this year.