Sep 042013
 

MANILA, Philippines – BDO Unibank Inc. (BDO), the main banking arm of the SM Group, has improved its ranking in the world’s top 1,000 banks list, according to a report by UK-based banking and finance magazine The Banker.

Based on the report, BDO now occupies the 251st spot from 396th place in 2012, or 145 notches higher.

The Banker said the improvement in BDO’s ranking is on the back of an enhanced overall performance, particularly in terms of Tier 1 capital, assets and profit.

For the Philippine country listing, BDO secured the number one spot, the publication said.

The Banker’s Top 1000 World Banks ranking has been setting the industry benchmark since 1970, providing comprehensive intelligence about the health and wealth of the banking sector.

The report enables investors and clients worldwide to assess the strength and weakness of the banks, identify banking partners for the future, and track the big movers and new arrivals in the sector.

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BDO has been one of the most profitable banks in the country, more than doubling its net income in the first half of 2013 to P14.1 billion from P5.8 billion in the same period in 2012.

As of end-June 2013, BDO remained well capitalized with a capital adequacy ratio (CAR) and Tier 1 capital ratio of 18.3 percent and 15.6 percent, respectively, well above the regulatory minimum.

With record earnings for the period already representing more than two-thirds of its P20.4-billion guidance for 2013, the bank is optimistic of hitting its year-end targets as it expands its businesses while responding to market challenges.  

 BDO has one of the country’s largest distribution networks, with 790 operating branches and over 2,000 ATMs nationwide. 

It also has a branch in Hong Kong as well as 14 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.

BDO ranked as the largest bank in terms of total assets, loans, deposits, capital and trust funds under management based on published statements of condition as of March 31, 2013.

Jun 132013
 
iRemit to venture into financial derivatives

MANILA, Philippines – I-Remit Inc., a Filipino-owned global remittance firm, will venture into financial derivative activities as a safeguard against the impact of fluctuating foreign exchange rates, a company disclosure to the Philippine Stock Exchange (PSE) said. iRemit said its board has approved the amendment of the corporation’s primary purpose to give way to this new function. “With the amendment, and subject to the Bangko Sentral ng Pilipinas’ regulatory approval, the corporation will no longer be limited to engaging in spot foreign currency transactions,” it said. It added that it “will be able to engage in financial derivative activities such as foreign currency swaps, forwards, options or other similar instruments.” It would be noted that due to the peso’s appreciation against the dollar in the first three months of the year, iRemit’s income dropped 95 percent to P1.6 million from P33 million in the same period in 2012. As iRemit’s operation is dependent on transaction fees of foreign exchange particularly the peso, any forex gyration would greatly impact on its profit. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Due to the sharp peso appreciation, the company said its trading gains also suffered. For the first quarter, the company’s revenues dropped 11.8 percent to P175.8 million from P199.4 million in the same period last year. iRemit said the decline in sales was“mainly due to significant net realized foreign exchange loss as the Philippine peso continued to appreciate against the US dollar.” Despite the income drop, total transactions jumped six Read More …