BDO Unibank : earnings decline in Q1

MANILA, Philippines - Industry leader BDO Unibank Inc. has reported an 11-percent decline in net earnings in the first three months of 2016, signaling a modest outlook for full-year revenues.In a press briefing yesterday, BDO president and chief executive officer Nestor V Tan said the P5.5 billion net income in the first quarter of the year was lower than the P6.1 billion reported in the same period in 2015. "Weakness in global economies, election uncertainties, and excess market liquidity, key risks for the year, were already evident," Tan said.For the bank's full-year outlook, it now anticipates a modest four percent growth in earnings from P25 billion in 2015 to P26 billion in 2016. "We expect the Philippine economy to continue its strong growth trajectory, and the bank can ride on that positive growth.Nevertheless, the outlook for the country's economic growth remains positive but a little cautious, with key risks coming from both internal and external factors." "Drivers of growth will be net interest income, loan growth and gains in low cost deposits," Tan told reporters in a the briefing before the bank's annual stockholder meeting in Makati element-invisibleBusiness ( Article MRec ), pagematch: 1, sectionmatch: 1 In the first quarter, net interest income went up 17 percent to P15.5 billion, supported by the 15-percent jump in customer loans to P1.3 trillion, and a 14-percent growth in deposits to P1.7 trillion. Fee-based payments, transaction banking and asset management services increased 11 percent to P4.8 billion. However, trading and foreign exchange gains were lower at P1.5 billion versus the P3.4 billion in the same period last year For the rest of the year, BDO is looking to open between 50 to 100 new branches, with thrust toward the Visayas and Mindanao regions via the combined efforts of BDO and rural bank unit One Network Bank."ONB (One Network Bank) will be the vehicle for the expansion in areas suited for its kind of market, plus Visayas. We were under-represented in Mindanao prior to our acquisition of ONB," Tan said.In 2015, net income stood at P25 billion with gross loans at P1.27 trillion and deposits at P1.66 trillion.© Pakistan Press International, source Asianet-Pakistan

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