BDO earnings grow 6% in Q1
MANILA, Philippines - BDO Unibank Inc. reported a six percent rise in its net income for the first quarter, mainly driven by higher net interest income and customer loans.
In a briefing Thursday, BDO president Nestor Tan said earnings grew to P5.8 billion on the back of a 19 percent jump in net interest income to P18.4 billion. Customer loans expanded by 21 percent to P1.5 trillion.
Total deposits increased by 13 percent to P1.9 trillion backed by the 17 percent growth in low-cost CASA deposits.
“Other income likewise contributed significantly to the bottomline, led by fee-based service income from payments and settlements, credit card acquiring fees and wealth management services, which increased by 42 percent to P6.8 billion and insurance premiums further adding P2.2 billion,” BDO said.
Trading and foreign exchange gains, on the other hand, fell four percent.
BDO bolstered its capital base to P282 billion in the first three months of the year, driven by the successful completion of its rights offer which generated a total of P60 billion in fresh capital last January.
“With a strengthened capital base, robust business franchise and extensive distribution network, BDO is well-positioned to benefit from the country’s growth momentum,” the bank said.
For 2017, Tan said the bank is targeting a net income of P28 billion or an increase of 7.3 percent from the previous year.
Tan attributed the firm’s financial growth in 2016 to its continued branch expansion efforts in key provincial areas as well as its initiatives to tap new markets and underserved sectors.
In 2016, the bank officially launched its online stock trading services (BDO Nomura Securities), strengthened its life insurance business (BDO Life), and expanded its rural banking platform (One Network Bank or ONB).
“We will continue to expand our branch network because we believe the economy outside of NCR (National Capital Region) will drive our growth in the future. And we will continue expanding,” Tan said.
BDO is particularly interested in putting up more branches in the Visayas and Mindanao region.
It plans to open 60 branches this year. As of the end of 2016, the bank had a total of 982 branches, including one in Hong Kong.