BDO notes business grew with economy in 1st half | Cai U. Ordinario

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The continued recovery of the Philippine economy and broad-based growth across its core businesses helped earnings reach P35.2 billion for the first half the year, a statement issued last Monday by BDO Unibank Inc. (BDO) read.

THE continued recovery of the Philippine economy and broad-based growth across its core businesses helped earnings reach P35.2 billion for the first half the year, a statement issued last Monday by BDO Unibank Inc. read.

Given these, BDO said in a disclosure to the Philippine Stock Exchange that its return on common equity increased to 15.1 percent compared to 11.3 percent in the same period last year. “With improving macro-economic trends exemplified by decelerating inflation, sustained GDP [gross domestic product] growth and stable foreign exchange and interest rates, the bank remains poised to capitalize on emerging growth opportunities given its solid balance sheet, strong business franchise and diversified earnings streams,” BDO said.

The bank reported that its net interest income rose to P89.5 billion as gross customer loans expanded 8 percent year-on-year to P2.7 trillion while deposit liabilities broadened 12 percent to P3.3 trillion. BDO also said its non-interest income grew 11 percent to P38.2 billion due to the strong growth in various fee-based and Treasury/FX businesses. It noted that pre-provision operating profit settled at P52.4 billion, with revenues continuing to grow faster than operating expenses.

Shareholders’ equity increased to P487.5 billion given profitable operations. Capital adequacy ratio and Common Equity Tier-1 ratio strengthened to 15 percent and 13.9 percent, respectively. According to BDO, these remain comfortably above regulatory minimum levels. Book value per share increased 13 percent to P91.42.

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