BDO profit jumps 35% to P44.2 billion

MANILA, Philippines — Earnings of BDO Unibank Inc. surged by 35 percent to hit an all-time high of P44.2 billion in 2019 from P32.7 billion in 2018 on the back of the strong performance of the bank’s core recurring income sources.

BDO surpassed its profit guidance of P38.5 billion last year by P5.7 billion.

The listed bank said the bottomline translated to a higher return on common equity (ROCE) of 12.8 percent last year from 10.7 percent in 2018.

BDO booked a 22 percent jump in net interest income to P119.9 billion from P98.3 billion as customer loans went up by nine percent to P2.2 trillion on broad-based growth across market segments.

The bank’s net interest margin (NIM) improved on continued current account and savings account (CASA) growth as well as improving loan mix in favor of consumer and middle market customers.

BDO’s deposit base inched up by three percent to P2.5 trillion, bolstered by the eight percent rise in low-cost CASA deposits that cornered a 73 percent share.

Non-interest earnings surged by 21.9 percent to P60.6 billion from P49.7 billion as fee-based income increased by 15 percent to P35.3 billion from P30.7 billion.

On the other hand, BDO said insurance premiums amounted to P14.8 billion, while trading and foreign exchange gains settled at P5.7 billion.

Overall, gross operating income increased by 22 percent to P180.5 billion in 2019 from P148 billion in 2018.

Operating expenses rose by 17.5 percent to P115.2 billion from P98 billion amid 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’s total capital base grew by 12.9 percent to P370.6 billion from P328.1 billion.

Its capital adequacy ratio (CAR) improved to 14.2 percent from 13.7 percent while its common equity tier 1 (CET1) increased to 12.7 percent from 12.1 percent.