BDO posts 13% growth in profit to in first half
these activities in order to deliver the electric power services to the projected number of customers and their corresponding energy and demand requirements.
The ERC has stipulated that “upon receipt and consideration of their respective explanations, the ERC found no justifiable reason to absolve FBPC, ALECO, ABRECO and MAGELCO from the imposition of penalty.”
The regulatory body further pointed out that “the erring DUs were ordered to pay the amount o R50,000 each” as prescribed under the relevant provisions of the Electric Power Industry Reform Act.
The ERC explained that “the DDP helps in its review of the DUs’ capital expenditure applications and facilitates fulfillment of (its) mandate of ensuring reasonable power rates.”
The regulatory body expounded that it received “a letter from the DOE in June, 2015 requesting the issuance of a Show Cause Order (SCO) to the aforementioned DUs for their failure to comply with the submission of the DDP.”
The ERC qualified “SCOs were issued to the erring DUs directing them to submit their respective explanations on why no administrative penalty should be imposed upon them.”
BDO Unibank, Inc. (BDO), the country’s largest lender, posted a 13 percent growth in net income to R13.2 billion in the first half of the year due to broad-based improvement across its businesses and a one-time gain from the consolidation of BDO Life.
In a disclosure to the Philippine Stock Exchange, BDO said its core lending, deposit-taking and fee-based businesses drove its performance during the first semester of 2016.
Its customer loan portfolio grew to R1.4 trillion, outpacing the industry with a 21 percent rise with net interest income advancing by 17 percent to R31.7 billion.
Total deposits went up by 17 percent to R1.8 trillion, driven by the 23 percent jump in low-cost (current and savings accounts, comprising 69 percent of total deposits.
Fee-based service income rose by 18 percent to R10.6 billion, generated from the Bank’s investment/wealth management, payments/electronic banking, capital markets and insurance businesses.
Trading and foreign exchange income normalized and contributed R2.9 billion for the semester.
Other income inclusive of the onetime gain from the consolidation of the bank’s life insurance business settled at R8.6 billion. Without consolidation effects and one-off gains, other income grew by 13 percent.
Operating expenses increased by 31 percent due to the consolidation of One Network Bank and BDO Life which were absent in the comparable period last year.
Excluding ONB and BDO Life, operating expense growth would have been 12 percent, driven by higher manpower costs arising from CBA renegotiation last year, one-time expenses, as well as volume-related costs on the Bank’s business expansion.
The Bank continued to be conservative and set aside P1.7 billion in provisions even as asset quality remained stable. Gross nonperforming loan (NPL) ratio was steady at 1.3 percent, while NPL cover remained high at 153% percent.
The Bank’s capital base stood at R211.1 billion, with Common Equity Tier 1 (CET1) and Capital Adequacy Ratio (CAR) all remaining above the current regulatory minimum under the Basel III framework.
Looking ahead, BDO hopes to continue its strong performance as it leverages on its solid business franchise, strong balance sheet and strategic initiatives to tap its target markets and take advantage of the country’s growth opportunities.