Makati—(PHStocks)—BDO Unibank Inc. (PSE: BDO) posted a record net income of PhP14.3 billion in 2012, exceeding its PhP12.5 billion earnings guidance and 36% higher than the PhP10.5 billion profit in 2011.
Net interest income was PhP36.2 billion, up 7% even as volume growth was offset by the impact of regulatory changes and excess system liquidity. The Bank’s customer loan portfolio grew 15% to PhP769 billion, while CASA supported the increase in total deposits to PhP931.6 billion. Driving the Bank’s solid performance last year was the robust expansion in its lending, deposit-taking, and fee-based businesses.
Total non-interest income rose 18% to PhP24.6 billion contributed substantially by trading gains from treasury activities amounting to PhP8.2 billion. The Bank was able to capitalize on market opportunities and realize exceptional gains from its investment portfolio.
The Bank continued to set aside P4.9 billion in provisions for the year. Gross nonperforming loan (NPL) ratio further declined to 2.8%, while provisions now cover 126% of NPL by year-end 2012.
The Bank’s capital base stood at P157 billion, the largest in the industry, while Capital Adequacy Ratio (CAR) and Tier 1 Capital ratio were comfortably above the regulatory minimum at 19.1% and 15.2%, respectively. Return on Common Equity settled at 11.5% in 2012.