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Friday, March 29, 2024

BDO registers P22.8-b profit

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BDO Unibank Inc., the largest bank in the country controlled by retail tycoon Henry Sy Sr., posted a record net income of P22.8 billion in 2014, matching its earnings guidance for the year.

BDO in a statement Thursday attributed the strong performance to the expansion of its core businesses.

The 2014 net profit was also a 0.88-percent improvement over the P22.6-billion net income recorded in 2013.

“This represented an 18-percent growth in terms of recurring earnings [i.e., excluding one-off gains booked in 2013]. The bank’s customer loan portfolio outpaced the industry with a 20-percent growth to hit P1.1 trillion,” the bank said.

Total deposits rose 11 percent to P1.5 trillion, driven primarily by a 24-percent increase in CASA (current and savings account). This resulted in a 19-percent increase in net interest income to P51.2 billion.

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Fee-based service income contributed P18.0 billion, up 16 percent from year ago.

“This strong growth in NII and fees more than compensated for the decline in trading and foreign exchange gains. As such, gross operating income increased by 8 percent to P80.7 billion,” it said.

The bank kept its operating expense growth at 12 percent despite the sustained business and branch expansion. The bank allotted P5.1 billion in provisions for the year, even as asset quality continued to improve, with gross non-performing loan ratio falling further to 1.3 percent from 1.6 percent in 2013.

Reflective of its prudent provisioning policies, the bank increased its NPL cover to 188 percent in 2014 from 173 percent in 2013.

The bank’s capital base stood at P180 billion, with both the capital adequacy ratio and common equity Tier 1 ratio all comfortably above the regulatory minimum under the Basel III framework at 14.6 percent and 12.4 percent, respectively.

“With a strong business franchise, sustained growth strategy and solid capital base, BDO remains well-positioned to take advantage of emerging opportunities as well as face potential market challenges,” it said.

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