Sy's BDO posts P18.2-B profit in Jan-Sept
MANILA, Philippines - Henry Sy-led BDO Unibank reported its net income surged 73% to P18.2 billion in the first 9 months of the year, compared to P10.5 billion a year ago.
"Our core businesses continued to deliver very good numbers despite pressures from excess system liquidity and capital market volatility," BDO president Nestor V. Tan said in a statement.
Tan said the bank is "on track" to meet its P20.4 billion profit guidance for the year.
BDO said gross customer loans jumped 17% to P846.4 billion. Total deposits grew 40% to P1.2 trillion, on the back of continued growth in low-cost deposits and inflow of maturing Special Deposit Accounts funds from the Bangko Sentral ng Pilipinas. The BSP has been gradually phasing out SDAs and will close it to individual placements by the end of November.
The increase in loans and deposits contributed to a 16% increase in net interest income to P31 billion. Non-interest income rose 36% to P25.28 billion, as both fee-based income and trading and foreign exchange gains posted double-digit growth.
BDO said its gross non-performing loan ratio dropped 2.4% by the end of September. The bank has set aside provisions of P5.1 billion to raise its NPL coverage to 152%.
As of end-September, BDO's capital adequacy ratio and Tier 1 capital ratio of 17.1% and 15.3% respectively, are above the regulatory minimum and exceeds the Basel III requirements.