BDO Unibank Inc. said profit for the first nine months of the year reached P32.1 billion, up 49 percent from P21.5 billion a year ago, largely driven by the expansion in recurring core revenues.
The nine-month net income translates to a return on common equity of 12.5 percent, compared to 9.5 percent in 2018, BDO said.
It said customer loans increased 6 percent to P2.1 trillion, led by the sustained growth in the middle-market and consumer segments.
Total deposits rose 3 percent to P2.4 trillion, with low-cost current account/savings account deposits increasing by 6 percent and accounting for 72 percent of total deposits.
Net interest income hit P88.5 billion.
“Non-interest Income went up to P44.1 billion, led by fee-based income and insurance premiums which accelerated by 14 percent and 23 percent to P25.4 billion and P10.8 billion, respectively,” the lender said.
Trading and foreign exchange gains in the third quarter hit P690 million, compared to P1 billion a year ago.
“However, the trading and forex gains of P4.3 billion for the nine-month period reflects a normalized level compared to 2018, where a more volatile environment prevailed. As such, gross operating income rose to P132.6 billion,” the bank said.
Operating expenses rose 20 percent to P85.8 billion given the bank’s expansion as well as increased volume-related expenses.
“Excluding volume-related expenses, operating expenses would have risen by 14 percent,” the BDO said it set aside provisions worth P4.2 billion as part of its “conservative credit and provisioning policies.”
“Gross non-performing loan (NPL) ratio was steady at 1.2 percent, while NPL cover remained high at 168.2 percent,” it said.
BDO said it closed the period with a capital base of P364 billion, with common equity tier 1 and capital adequacy ratio at 13.1 percent and 14.6 percent, “remaining comfortably above the current regulatory minimum under the Basel III framework.”
“With its focused growth strategy, strong business franchise, solid balance sheet and extensive geographic reach, the bank remains solidly positioned to capitalize on the country’s solid economic pace and growth opportunities in underserved and emerging markets,” it added.