BDO says Jan.-Sept. net income up 10% at P19.3B

BDO Unibank Inc. posted a net income of P19.3 billion in the first nine months of 2016, up 10 percent from a year earlier, the bank said on Wednesday.

In a disclosure to the Philippine Stock Exchange, BDO said its core lending, deposit-taking, and fee-based businesses delivered solid results during the period, offsetting a more normalized contribution from treasury activities.

Net interest income stood at P48.4 billion, up 16 percent.

Customer loan portfolio totaled P1.4 trillion, up 15 percent on "broad-based growth across all market segments."

Total deposits amounted to P1.8 trillion, up 14 percent, supported by a 21-percent increase in low-cost current account, savings account (CASA) deposits which comprises 70 percent of total deposits.

Fee-based income increased by 15 percent at P16.0 billion.

Trading and foreign exchange income declined by 29 percent at P4.5 billion.

Operating expenses grew by 29 percent at P52.8 billion, reflecting the consolidated operations of One Network Bank and BDO Life Insurance.

The bank said it set aside P2.6 billion in provisions. Its gross non-performing loan (NPL) ratio stood at 1.3 percent, while NPL cover was at 143 percent.

The bank's total capital reached P215.4 billion, with common equity tier 1 (CET1) and capital adequacy ratio (CAR) both above the current regulatory minimum under the Basel III framework. — Ted Cordero/VDS, GMA News