Giant lender’s net hits P54B

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BDO Unibank, Inc. (BDO) reported a net income of P53.9 billion for the January — September period, P14 billion more that the P40.0 billion the giant lender posted during the same period last year, backed by broad-based growth across its core businesses.

This resulted in a Return on Common Equity (ROCE) of 15.1 percent from 12.4 percent in the same period last year.

Net Interest Income increased to P137.4 billion with customer loans growing 7.5 percent year-on-year to P2.7 trillion and deposits expanding12 percent to P3.4 trillion.

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Non-Interest Income settled at P57.9 billion,supported by various fee-based and treasury/FX businesses.

Pre-Provision Operating Profit amounted to P80.6 billion, with revenue growth continuing to outpace cost growth.

Non-Performing Loan (NPL) ratio remained stable at 1.99 percent despite the higher interest rate environment, while NPL coverage improved to 176 percent.

The bank continues to set aside provisions in line with its conservative credit and provisioning policies.

Common Equity increased to P494.3 billion given continued profitable operations. Book Value Per Share (BVPS) increased 13 percent to P93.83. Capital Adequacy Ratio and Common Equity Tier 1 (CET1) Ratio strengthened to 15.6 percent and 14.5 percent, respectively, with ample capital buffers vs. regulatory minimum levels.

“While macroeconomic challenges persist, BDO remains cautiously optimistic and is well-positioned to capitalize on opportunities given its strong balance sheet and diversified business franchise,” the bank said in a statement.

The Board of Directors, at its regular meeting held last week, approved the election of former Senator Franklin M. Drilon as Independent Director of BDO.  Atty. Drilon served in two different branches of government in various capacities. In the Senate, he served as Senate President, Majority Leader, Minority Leader and Chairperson of the Committee on Finance, as well as the Committee on Banks, Financial Institutions, and Currencies. In the Executive, he served as Executive Secretary, Secretary of the Department of Justice and the Department of Labor and Employment.

Atty. Drilon also served as Chairman of Philippine National Bank and as a Director of Land Bank of the Philippines. He is currently a Director of Phinma Education Holdings, Inc. and a Senior Counsel of ACCRA Law.

During the same meeting, Ramon Vicente del Villar de Vera II was also appointed as Senior Vice President under the Office of the President.

De Vera has more than 25 years of work experience, 22 years of which were in the banking industry. He co-founded Union Digital Bank Inc. in 2021 and was its Chief Executive Officer from 2021 to 2023.  Previous to that, he was with Union Bank of the Philippines as its Fintech Business Group Head (2017 to 2021), Corporate Product Head of Transaction Banking Group (2010 to 2013), and Business Development Director of Transaction Banking Group (2010 to 2013). De Vera also worked with other companies holding various positions, as follows: Globe Telecom as Media Business Development Head Telecom (2007 to 2010), TV 5 Broadcasting as Product Manager (2006 to 2007), Citibank N.A.  as Corporate Cash Product & Sales Manager / Business Unit Compliance Officer, Global Corporate & Investment Bank (2001 to 2006), and with the Philippines Equitor Group of Standard Chartered Bank (1997 to 2001).

BDO is a full-service universal bank which provides a wide range of corporate and retail services such as traditional loan and deposit products, treasury, trust banking, investment banking, private banking, rural banking and microfinance, cash management, leasing and finance, remittance, insurance, cash cards, credit cards, and online and non-online brokerage services.

BDO has the country’s largest distribution network, with over 1,700 consolidated operating branches and more than 4,700 ATMs nationwide.  It also has 16 international offices (including full-service branches in Hong Kong and Singapore) in Asia, Europe, North America and the Middle East.

The bank also offers digital banking solutions to make banking easier, faster, and more secure for its clients.

BDO is ranked as the largest bank in the country in terms of total assets, loans, deposits and trust funds under management based on published statements of condition as of June 30, 2023.

 

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