Do you consider to continue investing, buying and doing transactions related to the products and services of BDO Unibank, Inc. (BDO) in your daily activities as part of its success in the community?
BDO recorded a net income of P44.2 billion in 2019 from P32.7 billion in 2018 on the strong performance of its core recurring income sources. The results exceeded the Bank’s P38.5 billion guidance and translate to a Return on Common Equity (ROCE) of 12.8 per cent from 10.7 per cent the year before. The news was announced last February 27, 2020.
Net interest income went up to P119.9 billion from P98.3 billion. Net Interest Margin (NIM) improved on continued CASA growth and improving loan mix in favor of consumer and middle market customers. Customer loans rose by nine (9) per cent to P2.2 trillion on broad-based growth across market segments. Total deposits grew by three (3) per cent to P2.5 trillion, bolstered by the eight (8) per cent increase in low-cost Current Account/Savings Account (CASA) deposits that comprised 73 per cent of total deposits.
Non-interest income reached P60.6 billion, led by fee-based income with P35.3 billion and insurance premiums with P14.8 billion. Trading and forex gains settled at P5.7 billion. Overall, gross operating income went up to P180.5 billion.
Operating expenses amounted to P115.2 billion, in line with the Bank’s continuing business and network expansion, as well as higher volume-related expenses (specifically, taxes and licenses and policy reserves at BDO Life). The Bank maintained its conservative credit and provisioning policies, setting aside P6.2 billion in provisions, even as gross non-performing loan (NPL) ratio was steady at 1.2 per cent and NPL cover remained high at 164.7 per cent.
Total capital base increased to P370.6 billion, with Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) ratio at 14.2 per cent and 12.7 per cent, respectively, both comfortably above regulatory levels.
Moving forward, BDO’s robust business franchise, extensive distribution network, solid balance sheet and focused growth strategy place the Bank in an advantageous position to tap growth opportunities and development thrusts in line with government priorities while remaining resilient to domestic and external challenges.
About BDO
BDO is a full-service universal bank which provides a wide range of corporate and retail banking services. These services include traditional loan and deposit products, as well as treasury, trust banking, investment banking, private banking, rural banking, cash management, leasing and finance, remittance, insurance, retail cash cards and credit card services.
BDO has the country’s largest distribution network, with over 1,400 consolidated operating branches and more than 4,400 ATMs nationwide. It also has 22 overseas remittance and representative offices (including full-service branches in Hong Kong and Singapore) in Asia, Europe, North America and the Middle East.
BDO ranked as the largest bank in terms of total assets, loans, deposits and trust funds under management based on published statements of condition as of December 31, 2019. For more information, please visit www.bdo.com.ph.
REFERENCE:
Chesca Ortega
PR and Events Specialist
Roar Agile Communicators Corp
roar.ph chesca.roar@gmail.com
