BDO net income up 36% in 2012

BDO Unibank Inc. registered a 36-percent improvement in its net income last year—from P10.5 billion in 2011 to P14.3 billion—exceeding its P12.5 billion earnings target, a company report said. The main financial arm of the SM Group cited robust expansion in its lending, deposit-taking, and fee-based businesses as reasons for last year's growth. In its report, BDO Unibank said net interest income grew 7 percent to P36.2 billion, even as volume growth was offset by the impact of regulatory changes and excess system liquidity.   The bank’s customer loan portfolio also increased 15 percent to P769.0 billion. "Total non-interest income rose 18 percent to P24.6 billion contributed substantially by trading gains from treasury activities amounting to P8.2 billion," the report said.   The bank was able to capitalize on market opportunities and realize exceptional gains from its investment portfolio.   "The bank continued to set aside P4.9 billion in provisions for the year. Gross non-performing loan [NPL] ratio further declined to 2.8 percent, while provisions now cover 126 percent of NPL by year-end 2012," the report said.   BDO’s capital base stood at P157 billion, the largest in the industry, while capital adequacy ratio and Tier 1 capital ratio were comfortably above the regulatory minimum at 19.1 percent and 15.2 percent, respectively. Return on common equity, meanwhile, settled at 11.5 percent in 2012.   With the economy is expected to sustain its growth momentum, BDO is looking forward to tapping the promising growth opportunities in its customer segments, capitalizing on its established business franchise and wide distribution network.   BDO has one of the largest distribution networks, with more than 760 operating branches and over 1,900 ATMs nationwide.  It also has a branch in Hong Kong as well as 15 overseas remittance and representative offices in Asia, Europe, North America and the Middle East. — KBK, GMA News