Sluggish trading income cuts BDO's H1 profit

MANILA, Philippines - Sy-controlled Banco De Oro Unibank Inc. on Monday reported that its net income in the first six months of the year was a quarter lower than its profit in the same period last year. In a statement, BDO said its net profit amounted to P2.4 billion, 25-percent lower than last year's P3.2 billion. "The bank’s basic interest differential business remains on track while service-based fee income continues to be supported by strong volume growth. However, the bottom line was impacted by lower trading gains arising from an adverse investment setting," BDO said. Net interest income grew 3 percent to P10.9 billion while non-interest income decreased 27 percent to P7 billion. Trading and foreign exchange gains plunged 57 percent to P1.3 billion as continued market volatility and higher domestic interest rates limited trading opportunities and resulted in mark-to-market losses on the bank’s investment portfolio. Service charges and trust fees dipped 11 percent to P4 billion, while miscellaneous income likewise contracted 15 percent to P1.7 billion due to lower one-time gains booked during the period. Operating expenses, meanwhile, inched up 4 percent to P13.1 billion with additional expenses related to the just concluded integration program. BDO is presently the country's second largest bank with assets of P676.7 billion. It also has the biggest trust banking operations with assets under management of P294.2 billion. The bank has a nationwide network of 657 branches and close to 1,200 ATMs. GMANews.TV