Banks full year profits hit new highs

February 24 2017 4:01 PM

Image from BDO Unibank's facebook account
Image from BDO Unibank’s facebook account

Several commercial banks have registered better performance in the full year- 2016, mainly driven by the country’s economic growth momentum.

BDO Unibank, Inc. (BDO) posted a P26.1 billion income in 2016, on the back of strong results across its core businesses.

BDO ranked as the largest bank in terms of total assets, loans, deposits and trust funds under management based on published statements of condition as of December 31, 2016.

In January 2017, BDO successfully completed its rights offer, raising a total of P60 billion in fresh capital and boosting the bank’s consolidated capital adequacy ratio (CAR) to an estimated 15.7 per cent.

This will allow the bank to support its medium-term targets and provide a comfortable buffer over higher minimum capital requirements with the staggered implementation of the Domestic Systemically Important Bank (DSIB) surcharge.

On the other hand, Metropolitan Bank & Trust Company (Metrobank ) reported a consolidated net income of P18.1 billion in 2016.
Metrobank achieved an all-time high levels in the bank’s 54-year history with total resources peaked at P1.9 trillion, total deposits reached P1.4 trillion, and total loans hit P1.1 trillion.

Throughout this growth cycle, Metrobank maintained its strong balance sheet profile in terms of liquidity, asset quality and capital adequacy.

As a result of the superior metrics in these areas, as well as its ability to record long-term profitability from core businesses, The Asian Banker once again named Metrobank as the Strongest Bank in the Philippines for the second year in a row.

Meanwhile, the Philippine Savings Bank (PSBank), the thrift bank arm of the Metrobank Group, posted a full year net income of P2.45 billion in 2016, higher than the P2.35 billion recorded in the previous year. This translated to a return‐on‐average equity of 12.5 percent.

The increase was fueled by the bank’s core income, composed of net interest margin and fees and commissions, which rose by 11.6 percent to P10.80 billion from P9.68 billion last year.

The bank’s total loan portfolio continued to post double‐digit growth year‐on‐year, rising by 11.4 percent to P129.2 billion from P116.0 billion, mainly driven by the significant increase in auto and mortgage loans.

On the funding side, total deposits grew by 17.9 percent to P158.39 billion from P134.30 billion, with low cost funds increasing by 19.1 percent.

By end‐2016, PS Bank’s total resources expanded by 16.3 percent to P196.9 billion. The bank’s Tier 1 and total CAR stood at 11.1 percent and 14.1 percent, respectively.

“2016 was a good year for PSBank. Aside from strengthening our core business, the bank was also conferred with several new and back‐to‐back recognitions from local and international award‐giving bodies, acknowledging our ability to come up with innovative product offerings and provide exceptional end‐to‐end customer experience. Such recognitions drive us to continue to provide the best banking experience to our clients with products and services that are simple and reliable,” PSBank President Vicente R. Cuna Jr. said.

PSBank was ranked second strongest bank in the Philippines by The Asian Banker in its AB500 annual ranking 2016‐2017 Edition.