BDO says H1 net income up 54% at P20.2B

BDO Unibank Inc. posted a net income of P20.2 billion during the first six months of 2018, up 54% from P13.1 billion a year earlier on the back of strong recurring earnings from core businesses.

The bank noted solid growth in fee income and normalization of trading and foreign exchange gains helped lift its bottom line.

In a statement on Friday, the Sy-lender said net interest income grew by 24% to P56.9 billion as net interest margins (NIMs) increased to 3.99% from 3.50%.

Gross customer loans rose by 7% to P2 trillion from double-digit growth in the consumer and middle market segments.

Total deposits stood at P2.4 trillion, up 3% as customers shifted to higher-yielding fixed income investments, primarily bank-issued bonds.

BDO’s current account, savings account (CASA) ratio was maintained at 70%.

Non-interest income jumped 29% to P29.5 billion as fee-based income and insurance premiums posted double-digit growth.

Trading and forex gains totaled P3.6 billion on favorable capital market conditions.

Operating expenses rose by 21%, in line with continuing expansion and higher volume-related expenses. Fifty-three domestic branches and offices were opened.

“With expectations of better economic prospects going forward, BDO will continue to build on its business franchise and extensive distribution network to tap new growth areas and underserved markets,” the bank said. —Ted Cordero/VDS, GMA News