Net Interest Income rose 3% to P10.9 billion due to robust growth in loans and low-cost deposits. Gross customer loans expanded 24% year-on-year, driven primarily by the corporate and consumer loan segments. Total Deposits also increased 9% year-on-year to P498.8 billion, with a sustained hike in low-cost deposits and reduced reliance on high-cost funds.

Non-Interest Income decreased 27% to P7.0 billion. Trading and foreign exchange gains plunged 57% to P1.3 billion as continued market volatility and higher domestic interest rates limited trading opportunities and resulted in mark-to-market losses on the Bank’s investment portfolio.

Service charges and trust fees dipped 11% to P4.0 billion with the absence of sizeable one-time advisory fees booked in 1H07. Miscellaneous income likewise contracted 15% to P1.7 billion due to lower one-time gains booked during the period. Adjusting for the one-off volatile capital markets activity, recurring fee income grew by 8% year-on-year, driven by volume growth in the Bank’s, remittance, credit card, cash management, bancassurance and trust banking operations.

Operating expenses inched up 4% to P13.1 billion with additional expenses related to the just concluded integration program. Impairment provisions fell 49% to P1.5 billion as the 1H07 level included incremental provisioning following the alignment and adoption of more conservative policies.

BDO is presently the country's second largest bank with assets of P676.7 billion. It also has the biggest trust banking operations with assets under management of P294.2 billion. The Bank is among the market leaders in its core business lines, with a nationwide network of 657 branches and close to 1,200 ATMs.