Makati—(PHStocks)—At the annual stockholders meeting today, BDO Unibank Inc. (PSE: BDO) President and CEO Nestor V. Tan reported full year 2015 results with net income hitting a record PhP25 billion, representing a 10% increase vs. year-ago and matching the bank’s earnings guidance for 2015.
The bank’s outstanding performance was attributed to the solid expansion across all business segments and the contribution of One Network Bank (ONB) which was acquired in July last year.
BDO is also undertaking other strategic initiatives to further accelerate its penetration into new markets. The Bank acquired full ownership of the life insurance business of Generali Pilipinas Holdings Co. (pending regulatory approval) as well as established a joint venture with Nomura Holdings for an online stock trading platform. Through the Bank’s subsidiary, BDO Leasing and Finance (PSE: BLFI), the bank will also tie up with Mitsubishi Motors Philippines Corp. (MMPC), Sojitz Corp. and JACCS Co. Ltd to provide financing services to individual and corporate buyers of Mitsubishi Motors vehicles.
For the first quarter of 2016, the bank posted a net income of PhP5.5 billion as core lending, deposit-taking and fee-generating businesses delivered solid numbers. Net interest income went up by 17% to PhP15.5 billion supported by the 15% jump in customer loans to PhP1.3 trillion and a 14% growth in deposits to PhP1.7 trillion, driven by the 23% increase in low-cost deposits.
Fee-based income from payments, transaction banking and asset management services increased by 11% to PhP4.8 billion. However, trading and foreign exchange gains were lower at PhP1.5 billion vs. PhP3.4 billion in the comparative period in 2015 due to less favorable market conditions.
The bank’s NPL ratio settled at 1.3% while NPL cover stood at 163% with the Bank setting aside PhP827 million in provisions for the quarter. With a capital base of PhP204 billion, the bank’s Capital Adequacy Ratio (CAR), Tier 1 Capital ratio and Common Equity Tier 1 (CET1) were at 13.4%, 11.8% and 11.4%, respectively, all above the current regulatory minimum levels under the Basel III framework.
The bank earlier this year declared and paid PhP0.30 per share cash dividend on common shares for the first quarter of 2016. The Bank likewise disclosed its earnings guidance of PhP26 billion for the full-year 2016 as it expects its Treasury income to normalize this year.