BDO net income up 19% in 2011

MANILA - The Henry Sy-led BDO Unibank, Inc. (BDO) reported an audited net income of P10.5 billion in 2011, a 19% jump from the P8.8 billion net profit posted in 2010.

BDO, the country's largest lender by assets, said on Tuesday it expanded its loan portfolio by 24% to P670.1 billion in 2011. This was attributed to the bank's focus on creditworthy borrowers in fast- growing industry sectors.

The bank's gross nonperforming loan (NPL) ratio further declined to 3.4% by end-2011 from 4.7% in 2010. Its NPL coverage improved to 106% from 92%, as it set aside P6.1 billion in provisions for the year.

The lender said it posted a 10% increase in total deposits to P858.6 billion, on the back of robust growth in low-cost deposits. However, net interest income, made up of feebased income and trading and foreign exchange gains, remained flat.

BDO said its recurring fee-based income from its service businesses grew by 18% to P12.3 billion. It also posted a 10% increase in trading and foreign exchange gains to P6.5 billion; and a 17% growth in non- interest income to P20.9 billion.

"Looking forward, the Bank will continue to take advantage of promising growth opportunities across industry and geographic segments while positioning defensively against potential external or industry threats," BDO said.

BDO is a unit of SM Investments Corp., which is owned by the country's richest man, Henry Sy. (Wires)