BDO posted record P28.1 Bn income in 2017
1Q18 Net Earnings at P5.9 Bn
2018 Annual Stockholders’ Meeting and 1Q18 Results Press Release 20 April 2018
BDO Unibank, Inc. reported its full year 2017 results with net income at P28.1 billion, matching the earnings guidance for the year and setting a record net income for the Bank.
The Bank attributed its solid performance to the strong growth of its core businesses, with sustained loan and deposit expansion, as well as the positive performance of fee-based service businesses.
For the first quarter of 2018, the Bank earned P5.9 billion, steady from the year-ago level. Excluding the impact of PRFS 9 or specifically the mark to market (MTM) revaluation of the investment portfolio of BDO Life and the ongoing restructuring and expansion costs at One Network Bank (ONB), net income would have reflected a 16 per cent increase.
Net interest income grew by 20 per cent to P22.2 billion due to the 18 per cent expansion in gross customer loans to P1.8 trillion and the 16 per cent hike in total deposits to P2.2 trillion, with low-cost CASA deposits contributing the bulk of total deposit growth.
Insurance premiums rose by 20 per cent to P2.6 billion, fee-based income increased by two (2) per cent while trading and FX gains fell to P24 million.
Operating expenses grew by 11 per cent to P23.1 billion in line with continued business expansion.
Provisions rose by 26 per cent to P1.8 billion even as asset quality improved. Year on year, NPL ratio was lower at 1.2 per cent from 1.3 per cent, and NPL cover higher at 156.4 per cent from 137.9 per cent yoy.
Capital base increased to nearly P300 billion, with Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) at 14.3 per cent and 12.6 per cent, respectively.
Additionally, BDO disclosed its earnings guidance of P31 billion for the full-year 2018, as it leverages on its strong business franchise and expands in underserved markets amid a challenging and competitive operating landscape.