The country’s largest bank recorded a net income of P13.2 billion in the first six months, P1.5 billion higher than the P11.7 billion recorded in the same period last year. Philstar.com/File Photo
MANILA, Philippines – BDO Unibank Inc. (BDO) posted a double-digit growth of 13 percent in earnings in the first half, and is on its way to deliver promised record profits amounting to P26 billion this year.
The country’s largest bank recorded a net income of P13.2 billion in the first six months, P1.5 billion higher than the P11.7 billion recorded in the same period last year.
BDO president Nestor Tan earlier said the bank is on track with its record-high income target of P26 billion this year from P25 billion last year.
BDO, owned by retail and banking magnate Henry Sy, traced the growth to the broad-based improvement across its businesses and a one-time gain from the consolidation of BDO Life.
The bank said core lending, deposit-taking, and fee-based businesses drove its performance in the first semester.
BDO said net interest income rose 17 percent to P31.7 billion in the first half from P27.1 billion after its lending activity surged 21 percent to P1.4 trillion, while total deposits rose 17 percent to P1.8 trillion.
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Earnings from fee-based services including investment or wealth management, electronic banking, capital markets, and insurance business grew 18 percent to P10.6 billion.
BDO said trading and foreign exchange income normalized and contributed P2.9 billion in the first half.
BDO’s other income, inclusive of the one-time gain from the consolidation of its life insurance business, settled at P8.6 billion. Without consolidation effects and one-off gains, other income grew 13 percent.
However, the consolidation of One Network Bank and BDO Life resulted in the 31 percent jump in operating expenses in the first half.
Without the additional expenses from the consolidation, the bank’s operating expenses would have expanded 12 percent covering higher manpower costs arising from collective bargaining agreement (CBA) renegotiation, one-time expenses, and volume-related costs amid its business expansion.
“Looking ahead, BDO hopes to continue its strong performance as it leverages on solid business franchise, strong balance sheet and strategic initiatives to tap target markets and take advantage of the country’s growth opportunities,” the bank said.
BDO has more than 1,000 operating branches and over 3,000 ATMs nationwide. It also has a branch in Hong Kong as well as 26 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.
It is the country’s largest bank in terms of total assets, loans, deposits, and trust funds under management.
