BDO Unibank Inc., the biggest bank controlled by tycoon Henry Sy, said net income in 2015 increased 10 percent to a record P25 billion from P22.8 billion a year ago on the strength of its core businesses.
The bank said in a disclosure to the stock exchange Monday the performance last year matched the earnings guidance in 2015 despite a challenging operating environment.
“The sustained expansion in lending, deposit-taking and fee-based businesses drove the bank’s solid performance last year. BDO’s customer loan portfolio grew 17 percent to P1.3 trillion, outpacing the industry’s growth of 13 percent,” it said.
“BDO also achieved another milestone last year as it became the first domestic bank to reach the P2-trillion mark in total assets,” it said
Total deposits increased rose 12 percent to P1.7 trillion, driven by the 19-percent jump in low-cost deposits. This resulted in net interest income amounting to P57 billion.
Non-interest profit climbed to P31.9 billion, with fee-based service income contributing P19.4 billion and trading and foreign exchange gains accounting for P7.2 billion. Gross operating income overall improved 10 percent to P88.9 billion.
Operating expense rose 14 percent due to sustained business and branch expansion as well as the consolidation of One Network Bank in July 2015. Meanwhile, the bank set aside P3 billion in provisions, even as gross non-performing loan ratio declined to 1.2 percent from 1.3 percent in 2014. NPL cover remained high at 166 percent.
BDO’s capital base hit almost P200 billion in 2015, with capital adequacy ratio, Tier 1 capital ratio and common equity Tier 1 ratio all settling comfortably above the current regulatory minimum under the Basel III framework at 13.3 percent, 11.7 percent and 11.3 percent, respectively.
“For 2016, BDO believes its solid balance sheet, strong business franchise and focused growth strategy place the bank in a solid position to take advantage of the country’s growth opportunities amid an increasingly competitive and volatile environment,” it said.
The bank’s board of directors during its regular board meeting on Feb. 27 approved the declaration of a P0.30 per share cash dividend on common shares for the first quarter of this year, with an ex-dividend date of March 9, 2016, record date at March 14, 2016 and payment date at March 28, 2016.
BDO has one of the largest distribution networks, with more than 1,000
operating branches and over 3,000 automated teller machines nationwide. It also has a branch in Hong Kong as well as 26 overseas remittance and representative offices 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 Dec. 31, 2015.