BANCO DE ORO UNIBANK, INC. (BDO)
BDO sustained its growth momentum by posting a net income of Php4.1 billion in the first half of 2010, up 94% from the Php2.1 billion earnings recorded in the first half of 2009. This stems from the continued growth in operating income and effective cost management. Net interest income grew 17% to Php16.7 billion, driven by the 19% expansion in gross customer loans to Php491.5 billion. Total deposits increased 11% to Php693.3 billion, as low-cost deposits maintained its upward trend.

Fee-based service activities and treasury income complemented BDO’s lending and deposit-taking business. Fee-based service income rose 14% to Php5.2 billion, with contributions from transaction banking, remittance, investment banking, trust, private banking, insurance and credit cards. BDO was able to capitalize on trading opportunities in the first semester, resulting in trading and foreign exchange gains of Php2.6 billion, up 35% from the comparable period last year.

Return on Equity (ROE) advanced to 11.1% in the first half of 2010 compared to 7.2% in the first half of 2009. Retained earnings coupled with a US$250 million capital-raising program completed in April boosted Capital Adequacy Ratio (CAR) to 14.3% from 12.8% as of March 2010.

CHINA BANKING CORPORATION (China Bank)
China Bank registered a Php2.1 billion net income from January to June, 8.6% higher than the Php1.95 billion income recorded the same period last year. This translates to a return on equity of 14.67% and return on assets of 1.82%.

Net interest revenues improved by 8.04% to Php4.23 billion. Gross loans grew 11.34%, fuelled by lending to corporates and commercial accounts. Trading gains was up 7.98% while gains from sale of acquired assets grew to Php119 million or 138% higher than the previous year.

China Bank’s total resources stood at Php232.55 billion. Total deposits expanded to Php191.95 billion, driven by the 22.28% surge in peso CASA to Php63.8 billion and an increase in dollar deposits. The share of CASA to total peso deposits further improved to 46.81% from 42.10% at year-end 2009. Gross loan portfolio reached Php103.65 billion. Non-performing loans ratio likewise improved to 4.35% as intensive monitoring at the management and board level continued. With sufficient coverage for probable losses already in the books and highly collateralized loans, China Bank booked lower loan loss provisions of Php295 million, bringing its loan loss coverage ratio to 122.5%.

Total capital funds stood at Php28.65 billion. With a Tier 1 capital adequacy ratio (CAR) of 13.39% and total CAR of 13.9%, China Bank remains one of the country’s best capitalized banks.