LISTED BDO Unibank Inc.’s net income increased to P21.5 billion in the first nine months of 2018, prompting it to express optimism that it would hit its earnings guidance this year.
In a statement on Monday, the Sy-led banking giant said the amount was a 5.3-percent increase from P20.4 billion in the same period last year.
Net interest income rose by 20 percent to P71.5 billion, with net interest margin rising year-on-year and quarter-on-quarter “due to upward loan repricing, and managed funding costs given a large low-cost CASA (current account/savings account),” it added.
Insurance premiums and fee-based profit resulted in a P35.8-billion non-interest income.
Overall, gross operating income climbed by 13 percent to P107.3 billion.
According to BDO, sustained business and branch expansion, as well as higher documentary stamp tax (DST) on time deposits, owing to the implementation of the government’s tax reform program, boosted its operating expenses by 13 percent to P71.7 billion.
“With the positive performance in the first nine months [of] this year, the bank believes that the 2018 full-year earnings guidance of P31 billion remains within reach given the seasonally stronger fourth quarter, combined with encouraging results from the bank’s strategic initiatives expanding across underserved segments and growth areas,” BDO said.
For the third quarter alone, earnings soared by 15 percent to P8.4 billion from year-ago’s P7.105 billion on the back of expansion in its core lending and deposit-taking, life insurance, and fee-based businesses.
BDO is the country’s largest bank in terms of assets. It operates more than 1,200 branches and over 4,000 automated teller machines (ATMs) nationwide.
BDO shares rose by P2.30 to end at P118.30 each on Monday, in line with the 0.63 percent rise in the Philippine Stock Exchange index.
Source: The Manila Times