Banco de Oro overshoot third quarter target

Banco de Oro (BDO) Universal Bank registered an unaudited net income of P772.1 million as of Sept. 30. This performance was 118 better than the bank’s net income of P353.3 million for the same period last year, and ahead of its 3rd quarter 2002 target of P717 million. The healthier bottomline is attributable to a slight improvement in net interest income and a strong performance from fee-based activities, primarily trust, branch and treasury fixed-income dealership.

BDO’s bottomline was further enhanced by a non-recurring gain from secondary shares sold during the bank’s public listing last May. Operating expenses increased by a meager 0.5 percent to P1.89 billion due to effective cost management and synergies derived from the merger with Dao Heng Bank last year. Net interest income stood at P1.612 billion which is slightly better than last year’s P1.603 billion.

The bank also set aside P1.17 billion for provisions as against P160.8 million for the same period last year.

Total resources as of Sept. 30, 2002 stood at P99.805 billion, an increase of P27.04 billion or 37 percent higher than the levels for 2001. Deposits likewise increased by P19.37 billion, or 36 percent, to P73.412 billion from year-ago levels.

The loan portfolio grew by P10 billion to P48.6 billion for a growth rate of 26 percent. Capital funds improved from P8.46 billion to P13.37 billion, resulting from additional capital raised and proceeds from the initial public offering last May. The bank’s ratio of non-performing loans to total loans was at 8.4 percent compared to 10.52 percent last year. This compares favorably with the industry average, which stood at 17.5 percent as of August 2002.