MANILA - Top lender Banco de Oro Unibank Inc. (BDO) reported a 10% rise in second-quarter profits despite the sluggish economic environment.

In a statement, the Henry Sy-owned bank said net profit from April to June 2009 rose to P1.1 billion from the P1 billion recorded in the same months last year.

"Sustaining earlier gains, the bank's loans, deposits, net interest income and fee-based income continued to grow. Income from trading activities also improved with a more stable financial environment," it said.

However, in the first half, BDO's net income dropped 10% to P2.1 billion from P2.4 billion, in the absence of extraordinary items.

Gross customer loans grew 28% year-on-year to P414.4 billion during the period as demand in all market segments remained strong. Deposits, on the other hand, rose 26% to P627.1 billion on inflows of low-cost deposits and the redeployment of branches in high-growth areas.

Meanwhile, BDO's first-half net interest income jumped 32% to P14.3 billion while its fee-based income went up 11% to P4.5 billion.

Trading and foreign exchange gains have improved by 46% to P1.9 billion as the bank's treasury business benefited from a more stable financial market.

BDO, whose shares are listed on the Philippine Stock Exchange, is keeping an optimistic outlook for the rest of the year, targeting a full-year net income of P5.5 billion.