Banco de Oro posts P13.3-B net income in H1 2017

August 1, 2017 - 1:48 AM
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As the market breached the 8,300 ceiling Tuesday, retailers and banks advanced, with Puregold Price Club Inc. and BDO Unibank Inc. rising to all-time highs at the end of trading. INTERAKSYON FILE

MANILA – Sy-led Banco de Oro Unibank Inc. (BDO) registered a P13.3-billion net income in the first half of 2017, higher than the P11.7 billion in the same period in 2016.

In a disclosure with the Philippine Stock Exchange (PSE) Monday, the bank traced the improvement of its bottom line to core businesses or the rise in loans, the low-cost deposits and recurring fee-based service income.

Loans went up by 17 percent to P1.6 trillion while total deposits ended nearly P2 trillion, with the latter buoyed by the 17-percent increase in low-cost savings and current accounts, which in turn account for 73 percent of total deposits.

With the increase in core businesses, net interest income posted an uptick of 22 percent to P38.6 billion, the disclosure said.

Non-interest income during the period reached P23.2 billion, driven by fee-based service income, which rose 13 percent.

Of the total, insurance premiums increased by 17 percent to P4.6 billion while trading and foreign exchange gains contracted by 21 percent from year-ago’s P3.2 billion to P2.5 billion.

Operating expenses in the first half of the year rose 20 percent on back of the bank’s bid to expand its core businesses as well as new investments in additional areas.

Provisioning for the period reached P2.9 billion while gross non-performing loan (NPL) ratio and NPL cover are steady at 1.3 percent and 137 percent, respectively.