Banco de Oro registers 43% profit growth

Banco de Oro Universal Bank (BDO) registered an unaudited net income of P1.517 billion last year, or 43 percent better than the P1.057 billion in 2002.

"The growth in income is due to an increase in its net interest income to P3.5 billion which grew by 55 percent from the previous year," the bank said in a statement.

Total resources grew 21 percent from P25.4 billion in 2002 to P146.4 billion last year. Deposits increased by 10 percent to P101.6 billion, while bills payable grew to P24.6 billion.

Net loans expanded to P57.3 billion while capital funds increased to P14.89 billion.

BDO’s non-performing loans (NPLs), meanwhile, stood at P5.9 billion, higher by P990 million compared to 2002.

"This increase is due to a mandated reclassification of non-performing fixed-income investments of the same amount to NPLs. Exclusive of this reclassification, NPLs actually declined two percent to P4.86 billion," the bank said.

It set aside P1.25 billion in loan-loss provisions, bringing its coverage ratio to 55 percent from 41 percent in 2002. The resulting NPL ratio of 7.9-percent (inclusive of the non-performing investments), however, remains one of the lowest in the industry.

Other income declined by three percent to P2.38 billion, although income in the year 2002 included a one-time gain from the sale of secondary shares during its initial public offering in May 2002. Exclusive of this one-time gain, it actually increased by 15 percent last year.

Operating expenses reached P3.49 billion, up 22 percent compared to 2002. The growth is due to expenses related to the integration and operations of the additional branches acquired from First e-Bank and the acquisition of Banco Santander Phils. last July.