Henry Sy’s BDO sees P26B profits this year amid 10% drop in Q1
BDO Unibank Inc. of Bilyonaryo Henry Sy sees profits inching up by four percent this year despite the 9.8 percent drop in earnings in the first quarter due to less favorable market conditions.
BDO president Nestor Tan said the earnings of the country’s largest bank is expected to hit P26 billion this year from P25 billion last year.
In the first quarter of the year, the bank’s net income declined by P600 million to P5.5 billion from P6.1 billion in the same period last year despite solid numbers from core lending, deposit-taking and fee-generating businesses.
The decline was traced to the 56 percent plunge in trading and foreign exchange gains to P1.5 billion form January to March this year compared with P3.4 billion in the same period last year due to less favorable market conditions.
Net interest income rose 17 percent to P15.5 billion supported by the 15 percent increase in customer loans to P1.3 trillion as well as the 14 percent growth in deposits to P1.7 trillion.
During the period, fee-based income from payments, transaction banking and asset management services went up by 11 percent to P4.8 billion.
BDO’s outstanding performance was attributed to the solid expansion across all business segments and the contribution of One Network Bank (ONB) that was acquired in July last year.
BDO is also undertaking other strategic initiatives to further accelerate its penetration into new markets.
It acquired full ownership of the life insurance business of Generali Pilipinas Holdings Company as well as established a joint venture with Nomura Holdings for an online stock trading platform.
BDO Leasing and Finance, also partnered with Mitsubishi Motors Philippines Corp. (MMPC), Sojitz Corp. and JACCS Co., Ltd. to provide financing services to individual and corporate buyers of Mitsubishi Motors vehicles.