Banco de Oro Universal Bank posted a 23% growth in bottomline profits with a consolidated net income of P2.29B for the first nine months of 2006.  Net income for the third quarter alone was at P1.03B, 53% higher than the P672M for the same period last year and 85% higher than the P558M for the second quarter of 2006.

 

Despite a generally lower interest rate environment for this year, the Bank managed to improve its net interest income by 17% owing to a substantial increase in its portfolio of interest earning assets. 

 

Non-interest income for the period grew by 47%, from P2.5B to P3.7B on account of an upsurge in trading gain due to a decline in interest rates in the third quarter of this year.  Trust fees and service charges, likewise, increased by 30% and 8%, respectively.

 

Operating expenses was 33% higher from the same period last year primarily owing to expenses related to the consolidation of the credit card subsidiary into the Parent Bank as well as the integration of the acquired UOBP branches.  With a 228-branch network as of the third quarter of the year, the Bank plans to redeploy 23 more branches in strategic business areas in the coming months.

 

Total resources as of the third quarter stood at P290.4B for a 36% year-on year growth.  Investment securities increased by 32% to P113.7B while net loans and other receivables grew by 28% to P123.8B.  Funding the growth in assets was a 37% growth in total deposits to P204.4B and a 24% increase in total capital owing to the continued profitable operations of the Bank.

 

Return on average equity was computed at 14.03% while return on average assets registered at 1.17%