MANILA, Philippines - Sy-led BDO Unibank reported a record net income of P14.3 billion in 2012, exceeding its P12.5 billion target for the year. BDO's profit was also 36% higher than the P10.5 billion profit in 2011.
In a disclosure to the stock exchange, BDO said net interest income was 7% higher at P36.2 billion even though volume growth was offset by the impact of regulatory changes and excess system liquidity.
BDO's customer loan portfolio rose 15% to P769.0 billion, while CASA supported the increase in total deposits to P931.6 billion.
BDO attributed its strong performance in 2012 to the expansion in its lending, deposit-taking, and fee-based businesses.
Total non-interest income went up 18% to P24.6 billion, mostly due to trading gains from treasury activities amounting to P8.2 billion.
BDO set aside P4.9 billion in provisions for the year. Gross non-performing loan (NPL) ratio further fell to 2.8%, while provisions now cover 126% of NPL by year-end 2012.
Its capital base stood at P157 billion, the largest in the industry, while Capital Adequacy Ratio (CAR) and Tier 1 Capital ratio were above the regulatory minimum at 19.1% and 15.2%, respectively.
"With the Philippine economy expected to sustain its growth momentum, BDO looks forward to tapping the promising growth opportunities in its customer segments, capitalizing on its established business franchise and wide distribution network," the bank said.
BDO is a unit of SM Investments Corp., owned by the Philippines' richest man Henry Sy.