Makati—(PHStocks)—BDO Unibank Inc. (PSE: BDO) registered a net income of PhP11.7 billion in the first six months of 2015 on sustained growth in the bank’s lending and deposit-taking businesses, notable gains from fee-based and treasury activities and managed operating expenses.
BDO’s sustained momentum in its core lending and deposit-taking businesses yielded a NII growth of 10%, which was tempered by the prevailing liquidity in the system. Income from fee-based services and treasury activities increased by 14% and further boosted the bank’s overall performance. As such, recurring revenue streams continued to account for over 83% of total operating income.
BDO’s asset quality showed sustained improvement with gross non-performing loan (NPL) ratio dropping further to 1.2 percent from 1.6 percent a year-ago. However, the bank continued to prudently set aside provisions of PhP2.1 billion leading to a higher NPL cover of 198 percent vs. 174 percent in the same period last year.
The bank maintained a solid capital base of PhP181 billion, with both the Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) ratio all comfortably above the regulatory minimum under the Basel III framework at 13.6 percent and 11.5 percent, respectively.
With a strong business franchise, sustained growth strategy and solid capital base, BDO remains well-positioned to take advantage of opportunities in a growing economy.