BDO Earns Record P32.7 Billion in 2018

2019 March – BDO Unibank, Inc. posted a record net income of P32.7 billion in 2018, representating 17% growth from its P28.1 billion results in 2017.


The year-end earnings of the country’s largest bank* beat its P31 billion full-year guidance on strong recurring earnings from its core businesses. It also capped another milestone as the first Philippine bank to breach the P3 trillion mark in total assets.


Leading the Bank’s performance was the solid growth in its core lending and deposit-taking businesses. Gross customer loans rose by 15% to P2.0 trillion on healthy increases across all market segments, while total deposits went up by 14% to P2.4 trillion, with low-cost CASA ratio at 70%. This resulted in the 20% expansion in net interest income to P98.3 billion on better net interest margins (NIM). The Bank’s NIM improved to 3.64% from 3.48% in 2017.


Meanwhile, non-interest income settled at P49.7 billion, with fee-based income contributing P30.7 billion and insurance premiums up 20%. Overall, gross operating income grew by 15% to P148 billion.


Operating expenses amounted to P98.0 billion, up 16%, in line with the Bank’s sustained investments in branch network and strategic initiatives. Excluding taxes and licenses, which grew by 41% as a result of higher business volumes and increased documentary stamp taxes (DST) under TRAIN, operating expenses would have grown by 13%.


BDO remained prudent and set aside P6.3 billion in provisions even as NPL ratio further improved to 1.0% from 1.2% in 4Q 2017. NPL cover was higher at 183% compared to 146% in 2017.


The Bank’s capital base stood at P328.1 billion, with Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) ratio at 13.7% and 12.1%, respectively, both above regulatory levels.


BDO is well-positioned to take advantage of market opportunities and strengthen its leadership position in the industry by leveraging on its strong business franchise and extensive distribution network.



*As of December 31, 2018, BDO Unibank Inc. ranks as the country’s largest bank in terms of total assets, loans, deposits, and trust funds under management based on published statements of condition.


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