Henry Sy banking arm remains profitable
The country’s largest lender BDO Unibank Inc. said its net income grew six percent to P5.8 billion in the first quarter on higher earnings from core businesses.
Net interest income remained the major earnings driver, rising 19 percent to P18.4 billion.
Customer loans jumped 21 per cent to P1.5 trillion, with all market segments turning in robust expansion rates.
Meanwhile, total deposits increased by 13 per cent to P1.9 trillion backed by the 17 per cent hike in low-cost CASA 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 per cent to P6.8 billion and insurance premiums further adding P2.2 billion.
Meanwhile, trading and foreign exchange gains dropped by four percent to P1.4 billion.
BDO had set aside provisions amounting to P1.4 billion for the quarter even as asset quality remained healthy with NPL ratio unchanged at 1.3 per cent and NPL cover at 138 per cent.
The bank raised P60 billion from a stock rights offerimg in January, boosting its capital base to P282 billion, as well as enhanced its Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) to 15.6 per cent and 14 per cent, respectively.
With a strengthened capital base, robust business franchise and extensive distribution network, BDO is well-positioned to benefit from the country’s growth momentum.