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BDO says 2016 net income a record P26.1B

BDO Unibank Inc. on Friday said strong results across core businesses gave the bank a record net income of P26.1 billion in 2016, in line with its earnings guidance.

The 2016 results were up 4.4 percent from P25.0 billion posted in 2015.

"This matched the bank's earnings guidance for last year and is a record net income for the bank," BDO disclosed to the Philippine Stock Exchange.

Customer loan portfolio stood at P1.5 trillion, up 16 percent.

Total deposits grew by 15 percent to P1.9 trillion on the back of sustained growth in the low-cost current account, savings account (CASA) deposits.

Net interest income amounted to P65.6 billion, up 15 percent.

Fee-based income grew by 15 percent at P22.2 billion, with insurance premium contributing P8 billion. Gross operating income stood at P107.2 billion.

Operating expenses rose by 27 percent at P70.1 billion, primarily due to the consolidation of One Network Bank and BDO Life Insurance.

Excluding the consolidation, operating expenses rose by 11 percent, BDO noted.

The bank set aside P3.8 billion in provisions as gross nonperforming loan (NPL) ratio held steady at 1.3 per cent. Its NPL cover is at 139 percent.

Its capital base stood at P217.5 billion, with a capital adequacy ratio (CAR) of 12.4 percent and common equity tier 1 ratio at 10.7 percent.

"In January 2017, the bank successfully completed its rights offer, raising a total of P60 billion ($1.2 billion) in fresh capital and boosting the bank’s consolidated CAR to an estimated 15.7 percent," BDO said.

"This will allow the bank to support its medium-term targets and provide a comfortable buffer over higher minimum capital requirements with the staggered implementation of the Domestic Systemically Important Bank surcharge," it added. — Ted Cordero/VDS, GMA News