Wednesday, August 29, 2007 BDO named RP’s best bank
BANCO de Oro (BDO) bested other Philippine banks to garner the coveted “Best Bank” title awarded by the prestigious international publication, Euromoney.
BDO was cited for its excellent management, impressive fiscal performance and continuing business expansion. This remarkable performance further reinforces BDO’s position as a frontrunner in the Philippine banking industry.
BDO reported notable financial results for 2006, with net income of P3.1 billion or a 23 percent increase from 2005 levels.
Net interest income was up 22 percent to P8.3 billion, as loans and deposits exhibited exceptional growth rates. Assets increased 30 percent to P304.5 billion, while non-performing loans were controlled at 3.95 percent.
Its return on equity was reported at 13.7 percent while the capital adequacy ratio was at 15.9 percent for the year.
As of June 2007, the bank started reporting financial results as a combined entity. For the first half of the year, BDO registered a 25 percent year-on-year increase in consolidated net income to P3.18 billion.
Net interest income (NII) climbed 19 percent to P10.96 billion while non-interest income surged 48 percent to P9.05 billion.
The main catalysts for the increase in NII were impressive growth rates in loans and low-cost deposits.
Traditional loan growth was at 12 percent, two times faster than the industry average, while low-cost deposits grew by a remarkable 32 percent.
Euromoney noted that BDO, besides pulling through a “transformational year” marked by the preparations to merge with Equitable-PCI Bank, scored other significant achievements in 2006.
It raised $115 million in Global Depositary Receipts (GDRs), listed in the London Stock Exchange, and generated P5 billion in long-term negotiable certificates of time deposits.
BDO earlier acquired the retail banking business of the United Overseas Bank of the Philippines to increase its network by 66 branches. (PR)
