BDO Private Bank income nears P1.2B

MANILA, Philippines - BDO Private Bank Inc. has forecast that its net income will reach P1.2 billion, up 120 percent from the P540 million recorded in 2012.

BDP Private Bank is a private commercial bank specializing mainly in wealth management banking services, or focused on giving comprehensive wealth management services to the country’s high net worth individuals and modern affluent markets. It is a subsidiary of BDO Unibank Inc.

As of presstime, assets under management (AUMs) rose to P240 billion, up nearly 10 percent from the P219 billion end May this year. Client base also rose to 7,000 also up nearly 10 percent from the 6,370 in May.

Average client portfolio grew to P32 million, from just P7 million in 2003.

For next year, the AUMs are targeted to reach P280 billion.

However, BDO Private Bank president Josefina N. Tan said that 2014 would be a difficult year, coming from a banner 2013 performance.

“2014 will be a difficult year for the bank, since we are coming from a banner year. At the same time, the business environment will be more challenge with wealth management relying on accrual income under a low interest rate market,” Tan said in a press briefing.

However, Tan assured that their main concern is the money of their clients.

“It is how we perform for the clients. After all, we manage their wealth,” she added.

The main source of earnings for BDO Private Bank is fees and commissions from wealth banking services. It is not into deposit taking or extending loans.

It is based on an open architecture platform, meaning the bank offers not only its products but also products offered by BDO and other banks and non-bank financial institutions.

“Whatever is best for the client, whatever the client wants,” Rafael G, Ayuste, BDO Private Bank senior vice president and trust officer, said.

The target market of the bank are the traditional wealthy, emerging wealthy such as entrepreneurs, professionals and other businesses, and the retired.

BDO has the infrastructure for wealth management and trust business, estate protection custody; financial asset investment management; estate planning/trust; and, financial advisory and asset consolidation.