BDO 9-month net earnings grow by 58%

Banco de Oro recorded a net income of US$146 million in the first nine months of 2010. This is higher by 58 percent compared to the US$91.27 million earnings for the comparable period in 2009, and is mainly attributed to sustained growth in business volumes amid a tempered hike in operating expenses.

 Net interest income rose 14 percent to US$579.5 million in the first nine months of 2010 due to a larger level of earning assets and lower funding costs. Gross customer loans expanded by 18 percent to US$11.4 billion arising from broad-based demand from various sectors. Total deposits grew 10 percent to US$16.2 billion, driven by robust growth in low-cost deposits generated from an expanded branch network.

Non-interest income increased by 17 percent to US$298.9 million on the back of steady growth in fee-based service income and a 39 percent rise in trading and foreign exchange gains. The Bank continued its conservative provisioning policy, boosting provisions by 13 percent to US$116 million leading to an improved non-performing loan coverage of 90 percent from 82 percent in the prior quarter. Return on Equity moved up to 11.2 percent in the first nine months of 2010 compared to 8.8 percent in the first nine months of 2009. Capital Adequacy Ratio remained robust at 14.2 percent due to profitable operations and the US$250 million in fresh capital raised in April.

Following its solid performance during the interim period, the Bank is on track to attain its net income goal of US$184.8 million for the full year of 2010.