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By Maricel E. Burgonio, Reporter
BDO-EPCI Inc., the newly merged
Banco de Oro Universal Bank and Equitable-PCI Bank, said profit
jumped by a quarter in the first six months of the year on growth in
incomes from its lending and nonlending businesses.
In a statement, the bank said
earnings grew 25 percent to P3.18 billion in the first half from
P2.5 billion in the same period last year.
Net interest income, or earnings
from its lending business, climbed 19 percent to P10.96 billion.
Noninterest income, or those
gained from its trading and other fee-based businesses, surged 48
percent to P9.05 billion from P6.1 billion last year.
The lender’s service fees rose
26 percent to P4.2 billion owing to increased contributions from
investment banking, remittances, asset management, credit cards,
cash management and bancassurance businesses.
Trading and foreign-exchange
gains reached P3.1 billion, an increase of 90 percent over last
year.
The bank also recorded a
50-percent increase in miscellaneous income at P1.8 billion as
against P1.2 billion last year.
The growth also supported
preprovision operating profit, allowing it to rise 30 percent to P20
billion year on year. The bank set aside provisions for impairment
amounting to P3.1 billion.
Its expenses rose by 22 percent
partly due to the deployment of additional manpower for former
branches of United Overseas Bank that were absorbed, as well as for
expansion in business volumes and one-time costs associated with the
merger approval.
Nestor V. Tan, BDO-EPCI
president, said the bank plans to raise $150 million to $200 million
this year or next year to boost its capital following the merger.
“Our capital now is adequate. I
think we need to prepare for the growth of the combined banks,” he
said.
The bank’s board of directors
approved the declaration of a cash dividend amounting to P0.80 per
common share.
Fitch Ratings Inc. earlier said
that the bank is unlikely to gain stronger profitability in the near
term due to the integration cost.
The merger will benefit from the
wider market of EPCIB in consumer banking such as credit card,
overseas Filipino workers, distribution network and product range.
Due to the merger, the bank has
become the Philippines’ second largest with P615 billion in
combined assets accounting for 16 percent of total commercial
banking industry assets.
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