June 27, 2017, 10:12 pm
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Bank’s Q1 profit up 6%

BDO Unibank Inc. (BDO) said it closed the first quarter of the year with profits of P5.8 billion, up six percent from last year’s P5.47 billion. 

The bank said earnings guidance for the year stands at P28 billion.

“Net interest income remained the major earnings driver, rising by 19 percent to P18.4 billion,” the company said. 

“Customer loans accelerated by 21  percent to P1.5 trillion, with all market segments turning in robust expansion rates,” it added. 

Total deposits hit P1.9 trillion, up 13 percent, backed by a 17 percent jump in low-cost CASA (current account/savings account) deposits. 

“Other income likewise contributed significantly to the bottom line, led by fee-based service income from payments and settlements, credit card acquiring fees and wealth management services, which increased by 42  percent to P6.8 billion and insurance premiums further adding P2.2 billion,” BDO said. 

“Trading and foreign exchange gains dropped by 4  percent to P1.4 billion,” it added.

BDO said it continues to set aside provisions worth P1.4 billion despite non-performing loan (NPL) ratio of 1.3 percent and NPL cover at 138  percent.

At the annual stockholders meeting Thursday, BDO president Nestor Tan said  the 2016 performance where profit stood at P26.1 billion, matching the bank’s earnings guidance for the year and setting a record net income for the bank.

Tan said the bank’s performance lies on strong results across its core businesses as well as efforts at building recurring and diversified income streams. These were supplemented by the bank’s continued branch expansion in key provincial areas and initiatives to tap new markets and underserved sectors.
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