MANILA, Philippines - BDO Unibank Inc. (BDO) has remained on track to attain its 2014 full year target net income of P22.8 billion, despite a drop in earnings in the first nine months of the year.
In a statement, BDO reported a net income of P16.8 billion down slightly by 7.6 percent from the P18.2 billion realized in the same period last year.
But in the July to September alone, profits grew by 41 percent to P5.7 billion.
“Key driver was the sustained quality earnings from its commercial banking businesses,” the universal bank of the SM Group said.
Net interest income grew by 21 percent to P37.5 billion.
The country’s largest bank said that gross customer loans finally breached the P1-trillion ceiling to end at P1.03 trillion, up 22 percent from year ago levels.
Total deposits were up 19 percent to P1.4 trillion, reportedly supported by faster growing low cost deposits.
Meanwhile, non-interest income slipped to P21.8 billion in the first nine months of 2014, lower than the P25.8 billion recorded in the same period in 2013.
After September, operating expense ended at P36.9 billion.
Gross non-performing loans (NPL) ratio improved to 1.4 percent, down from the 1.6 percent end 2013.
Consolidated capital adequacy ratio (CAR) stood at 14.1 percent (minimum requirement is 10 percent), and common equity Tier 1 ratio at 12.7 percent (minimum requirement is 8.5 percent) “under the current Basel III environment.”
At the end of 2013, BDO reported net earnings of P22.6 billion, up by 56 percent from P14.5 billion in 2012, and higher than original guidance of P20.4 billion.
Also last year, BDO opened 52 branches and roughly the equivalent number of ATMs.
BDO operates 850 branches and over 2,400 automated teller machines (ATMs) nationwide.
It operates a branch in Hongkong, and 15 overseas remittance and representative officers in Asia, Europe, North America and the Middle East.