Bank posts P44.2-B income in 2019

BDO Unibank, Inc. (BDO) recorded a net income of P44.2 billion in 2019 from P32.7 billion in 2018 on the strong performance of its core recurring income sources. The results exceeded the

bank’s P38.5 billion guidance and translate to a Return on Common Equity (ROCE) of 12.8% from 10.7% the year before.

Net interest income went up to P119.9 billion from P98.3 billion. Net Interest Margin (NIM) improved on continued CASA growth and improving loan mix in favor of consumer and middle market customers. Customer loans rose by nine 9% to P2.2 trillion on broad-based growth across market segments. Total deposits grew by three 3% to P2.5 trillion, bolstered by the eight 8% increase in low-cost Current Account/ Savings Account (CASA) deposits that comprised 73% of total deposits.

Non-interest income reached P60.6 billion, led by fee-based income with P35.3 billion and insurance premiums with P14.8 billion. Trading and forex gains settled at P5.7 billion. Overall, gross operating income went up to P180.5 billion.

Operating expenses amounted to P115.2 billion, in line with the bank’s continuing business and network expansion, as well as higher volume-related expenses (specifically, taxes and licenses and policy reserves at BDO Life). The bank maintained its conservative credit and provisioning policies, setting aside P6.2 billion in provisions, even as gross non-performing loan (NPL) ratio was steady at 1.2 per cent and NPL cover remained high at 164.7%.