BDO posts P32-B income in 2018

BDO Unibank, Inc. (BDO) posted a net income of P32.7 billion in 2018, representing a 17 percent growth. The bank likewise capped another milestone as the first Philippine bank to surpass the P3 trillion mark in total assets.

The bank attributed its solid performance to strong recurring earnings from its core businesses, with sustained loan and deposit expansion on the bank’s continued branch build out in key growth areas and new markets, particularly the underserved sectors.

Meanwhile, the bank sustained its growth momentum through the first quarter of this year, with net income advancing to P9.8 billion. This achievement was due to the continued expansion of its core banking operations, recovery of trading gains to normal levels, and strong results from bank fees and life insurance premiums.

Net interest income was a major earnings driver, rising to P27.7 billion on the continued growth in customer loans and CASA expansion, resulting in higher net interest margins. Meanwhile, non-interest income went up to P14.9 billion, led by banking fees and insurance premiums.

The Bank’s capital base increased to P338.4 billion, with Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) at 14 percent and 12.4 percent, respectively.

BDO set its earnings guidance at P38.5 billion for the full-year 2019, as the Bank leverages on its strong business franchise and extensive distribution network while executing its strategy to expand across high-growth areas and underserved segments.