June 27, 2017, 10:06 pm
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BDO Private Bank one of world’s best

Global Finance magazine has named BDO Private Bank (BDOPB) one of the world’s best private banks for continuously providing the diverse investment and financial needs of its high net-worth clients.

BDOPB is a wholly owned subsidiary of BDO Unibank, the country’s largest bank to date. 

“With unprecedented wealth accruing to individuals worldwide, the number of millionaires and billionaires is growing in every region of the world,” Joseph D. Giarraputo, publisher and editorial director of Global Finance, said in a statement. “Although often viewed as a monolithic group, in truth the wealthy have diverse needs--whether preserving inherited wealth or managing riches gained through entrepreneurship.”

He noted that the annual World’s Best Private Banks Awards help high net-worth investors choose wisely among the myriad private banks with different strengths in wealth advisory services, to identify the firms most likely to understand their individual needs and deliver on the highest level of client service.

Global Finance said it selected the winners making use of entry submissions, market research, input from industry analysts and executives, and other users of private banking services.

The winners will officially be honored during the dinner ceremony for the second annual World’s Best Private Banks Awards to be held in New York on February 7. A full report on the selections will appear in the December issue of Global Finance. 

Last week, parent company BDO announced that it has fixed the final terms for its P60 billion stock rights offering of up to 716.4 million common shares to stockholders as of record date 10 January 2017. 

Each eligible stockholder is entitled to subscribe to one common share for every 5.095 common shares held as of record date at an offer price of P83.75 per share. The offer price is based on the 15- day volume-weighted average price of BDO common shares listed at the PSE at a discount of 23.4 percent. 

The stock rights offer will commence at 9:00 a.m. on January 16 and end at 12:00 p.m. on January 24.

The fresh capital will support the Bank’s medium-term growth objectives amid the country’s favorable macroeconomic prospects and provide a comfortable buffer over higher capital requirements with the forthcoming imposition of the Domestic Systemically Important Bank (DSIB) surcharge. 

BDO has appointed Credit Suisse, UBS and BDO Capital as Joint Global Coordinators and Bookrunners, with Citigroup, Goldman Sachs and HSBC as Joint Bookrunners. BDO Capital will serve as Issue Manager and Domestic Underwriter. 

This came after the bank issued last October $300 million in Fixed Rate Senior Notes at 2.63 percent, the lowest ever coupon rate for any US Dollar denominated bond for a Philippine issuer.

BDO posted a 10 percent year-on-year increase in net income to P19.3 billion in the first nine months of the year boosted by the bank’s core lending, deposit-taking and fee-based businesses.

BDO, in a statement, said net interest income (NII) for the first nine months grew 16 percent to P48.4 billion while customer loan portfolio expanded by 15 percent to P1.4 trillion on broad-based growth across all market segments. 

Total deposits rose 14 percent to P1.8 trillion, supported by the 21 percent increase in low-cost CASA deposits which now comprise 70percent of total deposits.

Fee-based income was up 15 per cent to P16.0 billion, while trading and foreign exchange income normalized to P4.5 billion, or a decline of 29 percent.

Operating expenses increased by 29 percent to P52.8 billion, which reflects the consolidation of One Network Bank (ONB) and BDO Life Insurance operations.

The bank added it has set aside P2.6 billion in provisions even as asset quality held firm. Gross non-performing loan (NPL) ratio was steady at 1.3 percent, while NPL cover remained high at 143 percent.

The bank’s capital base stood atP215.4 billion, with Common Equity Tier 1 (CET1) and Capital Adequacy Ratio (CAR) both remaining above the current regulatory minimum under the Basel III framework.

BDO is a full-service universal bank which provides a wide range of corporate, commercial and retail banking services. 

It has one of the largest distribution networks, with more than 1,000 operating branches and over 3,000 ATMs nationwide.  It also has a branch in Hong Kong as well as 25 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.

BDO ranked as the largest bank in terms of total assets, loans, deposits and trust funds under management based on published statements of condition as of June 30, 2016.
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