BDO targets Php 28-B net income for 2017

The Sy-led BDO Unibank has penciled a Php28 billion profit guidance for 2017, up from its recordhigh Php26.1 billion net income in 2016.

In a briefing Thursday, BDO president and chief executive officer (CEO) Nestor Tan said loans and deposits, among others, will continue to help the bank achieve its income target.

In the first quarter of this year alone, the bank reported a 6 percent year-on-year rise in net income to PHP5.8 billion, boosted by net interest income, which rose 19 percent, and loans that went up 21 percent.

Net interest income in the first three months of the year amounted to Php18.4 billion while loans reached Php 1.5 trillion.

Total deposits increased by 13 percent to Php1.9 trillion, due mainly to the 17 percent expansion of low-cost deposits.

Tan said BDO officials remain optimistic of the continued robust performance this year, partly because of the government's bid to strengthen infrastructure investment.

“We're still positive on the local economy. The President's (Rodrigo Duterte) emphasis on infrastructure spending is actually positive because not only will it create economic activity from expenditure but it will also have a multiplier effect because it will create jobs, jobs create consumption, consumption helps businesses, and businesses create jobs,” he said.

Tan also sees a rise in foreign direct investments to the Philippines, which he pointed out is “a result of the diplomatic effort of the government.”