Banco de Oro posts record profit

The Philippines’ largest bank in assets, loans and deposits reports record performance metrics for 2011.

Banco de Oro Unibank, Inc. said its net profit grew to a record 10% to US$244 million in 2011 year-on-year. It also noted double-digit growth in fee-based earnings and trading gains while outpacing industry loan growth. Return on equity stood at 11.7%.

The bank said it will continue to take advantage of promising growth opportunities across industry and geographic segments while positioning defensively against potential external or industry threats.

Banco de Oro (which translates into “Bank of Gold”) saw its loans rise by 24% last year to US$15.6 billion as against an industry growth of 19% by focusing on wealthy borrowers in high growth sectors.

BDO, however, reported a flat net interest income compared to 2010 because of too much money in circulation. BDO recorded a 17% growth in non-interest income to US$487 million.

Gross non-performing loans (NPLs) as a ratio of total loans dropped to 3.4% last year from 4.7% in 2010.

BDO Unibank is owned by the SM Group of Companies, one of the country's largest conglomerates and owner of the SM chain of malls.