BDO Unibank, Incorporated registered impressive gains from its performance last year. BDO has obtained increments in nearly all of its units.
The Philippine banking institution recorded its earnings surging to an all-time high of P44.2 billion.
These figures exhibit an increase of 35 percent. Furthermore, this considerable profit transcended the profit guidance of BDO for 2019 that amounted to P38.5 billion.
The banking giant earned an additional P5.7 billion more. In 2018, BDO posted its earnings totaling to P32.7 billion.
For these positive developments, the financial services provider credited the energetic performance of its primary recurring sources of income.
The deposit base of BDO registered a three-percent increase to P2.5 trillion, as per Philippine daily newspaper The Philippine Star.
The eight-percent surge in the low-cost current account and savings account (CASA) deposits boosted this amount.
The CASA deposits captured a 73-percent share. As for the total capital base of BDO, it registered growth by 12.9 percent.
From P328.1 billion, the bank’s total capital base ballooned to P370.6 billion. The ratio of BDO’s capital adequacy registered a better performance, as well.
It improved to 14.2 percent from the previously recorded 13.7 percent. The publicly listed financial firm’s common equity tier 1 grew from 12.1 percent to 12.7 percent.
BDO relayed that for 2019, the bottom line converted to a higher return on common equity of 12.8 percent.
This figure is higher than 10.7 percent posted in 2018. From P98.3 billion, BDO’s net interest income recorded a 22-percent surge to P119.9 billion.
This development comes on broad-based growth across market segments as consumer loans got a nine-percent spike to P2.2 trillion.
As for the net interest margin of BDO, it witnessed improvement in continued CASA progress and enhanced loan blend.
This situation is in favor of consumers and middle-market clients.
As for the bank’s non-interest earnings, it also posted growth. From P49.7 billion, its 21.9-percent increment can be seen by the jump to P60.6 billion.
Moreover, fee-based income registered a 15-percent increase. It climbs from P30.7 billion to P35.3 billion.
The foreign exchange and trading earnings of BDO totaled to P5.7 billion. Furthermore, the bank’s insurance premiums reached P14.8 billion.
Overall, BDO’s gross operating income posted a 22-percent expansion in 2019. From P148 billion in 2018, it ballooned to P180.5 billion.
Meanwhile, the commercial bank’s operating expenditures rose from P98 billion to P115.2 billion, posting a 17.5-percent change.
The continued network and business expansion of BDO contributed to this situation. Aside from this reason, higher volume-related expenses are another factor.
These expenditures consist of licenses, taxes, and policy reserves at BDO’s life insurance arm, BDO Life.
On Thursday, February 27, 2020, BDO Unibank, Incorporated (PSE: BDO) closed at P143.00.
This last trade price of the commercial bank’s stock is up P6.00, or 4.38 percent. The total value reached P616,652,545.00.
The Philippine Stock Exchange recorded BDO’s 52-week high at P161.80. Meanwhile, the company’s 52-week low is at P121.50.
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