MANILA, Philippines - BDO Unibank Inc. on Monday said its net income hit a record P22.6 billion in 2013.
In a statement, the Sy-led bank said it exceeded its 2013 profit exceeded its P20.4 billion earnings guidance, and 56% higher than the P14.5 billion profit in 2012.
BDO attributed the bank's strong profit growth to higher earnings from core businesses and trading gains.
BDO's commercial banking businesses continued to grow, with net interest income jumping 20% to P43.2 billion. Customer loans went up 19%, breaching the P900 billion mark.
On the other hand, total deposits grew 44% to end the year at P1.3 trillion.
"The Bank’s continued branch expansion enabled it to keep cost of funds tempered with low cost deposits growing over 20%. In 2013, BDO opened a total of 52 new branches nationwide," the bank said.
BDO also reported P12.8 billion in trading and foreign exchange gains. Fee-based income rose 15% to P15.5 billion.
On the other hand, operating expense remained manageable at P43.2 billion, growing by 9.5%.
Asset quality continued to improve with the bank’s non-performing loan (NPL) ratio falling to 1.6% from 2.8% the previous year. BDO said it set aside provisions amounting to P7 billion as a result of continued loan growth, with coverage ratio currently at 171%.
After its $1 billion rights offering in 2012, the bank’s capital base currently stands at P164 billion, the largest in the industry as of end-2013.