BDO Unibank Inc. reported a net profit of P32.1 billion in the first nine months of the year, largely driven by the expansion in its recurring core revenues.
The bank said on Monday that its net income grew 10.6 percent from its P21.5-billion level in the same period last year. The nine-month net income translates to a Return on Common Equity (ROCE) of 12.5 percent, compared to 9.5 percent in the same period last year.
“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,” BDO said in a statement.
The bank’s customer loans increased by 6 percent to P2.1 trillion. BDO attributed the rise of customer loans to the sustained growth in the middle-market and consumer segments.
Meanwhile, total deposits was up 3 percent to P2.4 trillion, with low-cost Current Account/Savings Account (CASA) deposits increasing by 6 percent and accounting for 72 percent of total deposits.
The bank’s income from interest rose to P88.5 billion, while its non-interest income went hit P44.1 billion during the period.
BDO attributed the rise in non-interest income to fees and insurance premiums, which accelerated by 14 percent and 23 percent to P25.4 billion and P10.8 billion, respectively.
Trading and foreign-exchange gains, however, declined to P690 million from P1 billion year-ago.
BDO’s operating expenses rose 20 percent to P85.8 billion given the bank’s continuing expansion as well as increased volume-related expenses.
The bank’s capital base increased to P364 billion, with Common Equity Tier 1 (CET1) and Capital Adequacy Ratio (CAR) improving to 13.1 per cent and 14.6 per cent, and remaining comfortably above the current regulatory minimum under the Basel III Framework.