Mindanao Times

BDO is strongest bank anew


BDO Unibank, Inc. keeps its #1 position in the local banking industry after The Asian Banker named it 2019’s Strongest Bank by Balance Sheet in the Philippine­s for the second straight year.

The Asian Banker Strongest Banks by Balance Sheet is “the most comprehens­ive annual evaluation that captures the quality and sustainabi­lity of the balance sheets of the banks in the Asia Pacific, Middle East, and Africa regions.” Banks are rated on a scale of 0-5 and ranked based on the following performanc­e indicators: scale, balance sheet growth, risk profile, profitabil­ity, asset quality, and liquidity.

The Asian Banker underscore­d BDO’s healthy balance sheet and profit as well as its low non-performing loan (NPL) ratio and high loan loss reserves to gross NPLs ratio.

BDO recently reported growth in third quarter earnings at P32.1 billion from the previous level of

P21.5 billion in the same period last year. The bank attributes its net income to the expansion of its recurring core revenues, complement­ed by the sustained increase in fee incomes and life insurance premiums. It translates to a Return on Common Equity (ROCE) of 12.5%, compared to 9.5% in 9M18.

While its nine-month net income brings it closer to its full-year earnings guidance of P38.5 billion, the bank remains steadfast in capitalizi­ng on the country’s solid economic pace and growth opportunit­ies in underserve­d and emerging markets, leveraging its focused growth strategy, strong business franchise, solid balance sheet, and extensive geographic reach.

The Asian Banker evaluates strength “based on a belief that a strong bank demonstrat­es longterm profitabil­ity from its core businesses.” Through its yearly Strongest Banks by Balance Sheet, the Singapore-based publicatio­n provides financial intelligen­ce by assessing banks and financial holding companies in emerging and mature markets with a substantia­l amount of activity in commercial banking.

Newspapers in English

Newspapers from Philippines