MANILA, Philippines - BDO Unibank Inc., the country's biggest lender in terms of assets, reported a nine-month profit of P10.5 billion, a 38% increase from P7.6 billion a year ago.
In a statement, BDO attributed the higher profits to growth in its core lending and deposit-taking businesses and recurring fee-based service income, as well as trading gains from its treasury activities.
"Given this performance, the Bank is very optimistic on achieving its year-end targets," BDO said.
Net interest income grew to P26.8 billion, on the back of 17% growth in gross customer loans to P724 billion, and P860 billion in total deposits.
BDO said fee-based income increased to P10 billion, while trading and foreign exchange gains jumped 50% to P7 billion. This brought the total non-interest income higher by 23% P18.9 billion.
The bank's operating expenses went up to P29.7 billion, while P4.2 billion in provisions were set aside during the period.
BDO's gross non-performing loan (NPL) ratio is at 3.1%, while gross NPL coverage is at 124%.
The bank's capital adequacy ratio (CAR) and Tier 1 capital ratio stood at 20.3% and 15.2% as of end-September.
BDO is a unit of SM Investments Corp., owned by the Philippines' richest man Henry Sy.