MANILA - BDO Unibank posted P13.3 billion in net income in the first six months of 2017, with core earnings up 16 percent, the bank announced on Monday.
BDO said the income growth was driven primarily by an expansion in loan portfolio, low-cost deposits as well as higher recurring fee-based service income.
The bank said customer loans rose 17 percent to P 1.6 trillion, while total deposits rose to almost P2.0 trillion. As a result, half-year net interest income went up by 22 percent to P38.6 billion.
Meanwhile, non-interest income amounted to P23.2 billion driven by fee-based service income which rose 13 percent.
The bank's gross non-performing loan ratio, meanwhile, remained steady at 1.3 percent.
BDO also announced on Monday that it is issuing P5 billion of Long-Term Negotiable Certificates of Deposit (LTNCD) which will have a term of five-and-a-half years with indicative pricing at 3.50 percent to 3.75 percent.
The minimum investment is P100,000 with increments of P50,000.
BDO said the offer period will start on July 31 up to August 11, with the issue date set for August 18, 2017.
According to the bank, the offer is part of its efforts to diversify the maturity of its funding sources and support business expansion plans.
LTNCDs are akin to time deposits with a designated maturity and are covered by the Philippine Deposit Insurance Corp.