Banco de Oro-EPCI, Inc (BDO), the merged entity arising from the union of Banco de Oro Universal Bank and Equitable PCI Bank, reported a 25% year-on-year increase in Net Income on a consolidated basis to P3.18 billion in 1H07 from the P2.5 billion pro-forma income registered in 1H06. This result is credited to the growth in both net interest income and non-interest income.

Net Interest Income climbed 19% to P10.96 billion, as interest margins improved despite a slight growth in earning assets. Underlying loans registered a growth rate of 12% while total deposits grew by 7%, led by an increase in the Bank?s low-cost deposit base. This allowed the Bank to reduce its dependence on the more expensive borrowed funds as Bills Payable went down by 41%.

Non-Interest Income soared 48% to P9.05 billion from P6.1 billion last year. Service Fees and Commissions grew 26% to P4.2 billion owing to increased contributions from investment banking, remittances, asset management, credit cards, cash management and bancassurance. Trading and Forex gains reached P3.1 billion, an increase of 90% over last year, as conditions remained favorable in the first semester. The Bank also recorded a 50% increase in Miscellaneous Income, coming from various sources, at P1.8 billion as against P1.2 billion last year.

With this strong performance, Pre-provision Operating Profit rose 30% to P20B, compared to the same period last year. The Bank set aside Provisions for Impairment amounting to P3.1B, continuing its conservative provisioning policy and maintaining the Bank's coverage ratio at over 100%. Operating Expenses rose 22%, partly due to the deployment of additional manpower for UOBP's former branches, expansion in business volumes, and also due to one-time costs associated with the merger approval. As a result of this performance, the Bank's Board of Directors approved today the declaration of a Cash Dividend amounting to P0.80 per common share. The record and payment dates will be determined after securing regulatory approvals.