BDO cuts H1 income amid higher quarterly earnings
07/28/2009 | 11:17 AM
MANILA, Philippines - The country's largest lender Banco de Oro Unibank Inc. posted higher second quarter profits but failed to translate to better net income during the first semester.
However, Sy-led BDO said it "keeps an optimistic outlook" for the rest of the year with a full-year profit target of P5.5 billion, which is more than twice the P2.18 billion earned in 2008.
In a statement, net income rose 10 percent to P1.1 billion during the April to June period but earnings for the January to June period decreased by 12.5 percent year-on-year to P2.1 billion from P2.4 billion.
However, BDO said P1.1 billion represents a 62 percent growth on a recurring basis excluding extraordinary items in 2008.
"The sluggish macroeconomic environment has not dampened the growth of BDO in the second quarter. Sustaining earlier gains, the bank's loans, deposits, net interest income and fee-based income continued to grow. Income from trading activities also improved with a more stable financial environment," the bank said.
It can be recalled BDO trimmed its net income by almost a quarter to P1.01 billion from P1.34 billion during the first quarter due to "prevailing global financial setback."
During the second quarter, customer loans went up by 28 percent year-on-year to P414.4 billion while deposits rose 26 percent year-on-year to P627.1 billion on low-cost deposits and redeployment of branches in
high-growth areas.
Net interest income improved by 32 percent year-on-year to P14.3 billion in the six-month period on earning assets and better funding mix while higher contributions from funds management, remittances, credit
cards, cash management, investment banking and bancassurance drove fee-based service income by 11 percent to P4.5 billion.
With the more stable financial market, BDO said trading and foreign exchange gains soared 46 percent to P1.8 billion although the bank boosted provisions 64 percent to P2.5 billion to maintain its conservative outlook.
BDO shares were trading between P33.50 and P35 when it disclosed its financial results. Ruby Anne M. Rubio, -GMANews.TV
However, Sy-led BDO said it "keeps an optimistic outlook" for the rest of the year with a full-year profit target of P5.5 billion, which is more than twice the P2.18 billion earned in 2008.
In a statement, net income rose 10 percent to P1.1 billion during the April to June period but earnings for the January to June period decreased by 12.5 percent year-on-year to P2.1 billion from P2.4 billion.
However, BDO said P1.1 billion represents a 62 percent growth on a recurring basis excluding extraordinary items in 2008.
"The sluggish macroeconomic environment has not dampened the growth of BDO in the second quarter. Sustaining earlier gains, the bank's loans, deposits, net interest income and fee-based income continued to grow. Income from trading activities also improved with a more stable financial environment," the bank said.
It can be recalled BDO trimmed its net income by almost a quarter to P1.01 billion from P1.34 billion during the first quarter due to "prevailing global financial setback."
During the second quarter, customer loans went up by 28 percent year-on-year to P414.4 billion while deposits rose 26 percent year-on-year to P627.1 billion on low-cost deposits and redeployment of branches in
high-growth areas.
Net interest income improved by 32 percent year-on-year to P14.3 billion in the six-month period on earning assets and better funding mix while higher contributions from funds management, remittances, credit
cards, cash management, investment banking and bancassurance drove fee-based service income by 11 percent to P4.5 billion.
With the more stable financial market, BDO said trading and foreign exchange gains soared 46 percent to P1.8 billion although the bank boosted provisions 64 percent to P2.5 billion to maintain its conservative outlook.
BDO shares were trading between P33.50 and P35 when it disclosed its financial results. Ruby Anne M. Rubio, -GMANews.TV
