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BDO Raises P40.1 Bn in Fixed Rate Peso Bonds

The Philippine banking company, BDO Unibank, Inc. (BDO) was successfully raised Forty-Billion One Hundred Million pesos (P40.1 billion) of fixed rate bonds, or eight (8) times the original offer of Five Billion pesos (P5.0 billion) on strong demand from retail and institutional investors. The one-week offer period ended last January 24, 2020, with issue date set on February 3, 2020.

The bonds have a tenor of 2.5 years with a yield of 4.408 per cent per annum. Interest will be paid quarterly, calculated on a 30/360 count basis.

In fact, the bond issuance was part of BDO’s continuing efforts to diversify its funding sources and support its lending activities, and follows the P35 billion fixed rate of bonds issued in February last year.

The Hong Kong and Shanghai Banking Corporation Limited (“HSBC”) was the Sole Lead Arranger for the issue, while BDO Unibank, Inc., BDO Private Bank, Inc., and HSBC were the Selling Agents.

To give you an idea about a fixed rate bond with regards to finance matters, is a type of debt instrument bond with a fixed coupon (interest) rate. It is a long term debt paper that carries a predetermined interest rate. In addition with, the interest rate is known as coupon rate and interest is payable at specified dates before bond maturity.

About BDO

BDO is a full-service universal bank which provides a wide range of corporate and retail banking services. These services include traditional loan and deposit products, as well as treasury, trust and investments, investment banking, private banking, rural banking, cash management, leasing and finance, remittance, insurance, retail cash cards, credit card services and stock brokerage services.

BDO has one of the largest distribution networks, with more than 1,400 operating branches and over 4,400 ATMs nationwide. It also has full-service branches in Hong Kong and Singapore as well as 20 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.

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 September 30, 2019. For more information, please visit www.bdo.com.ph.

REFERENCE:

Chesca Ortega
PR and Events Specialist
Roar Agile Communicators Corp
roar.ph chesca.roar@gmail.com

February 10, 2020
BDO is the Philippines’ Strongest Bank for 2nd straight year

BDO Unibank, Inc. keeps its #1 position in the local banking industry after The Asian Banker named it 2019’s Strongest Bank by Balance Sheet in the Philippines for the second straight year.

The Asian Banker Strongest Banks by Balance Sheet is “the most comprehensive annual evaluation that captures the quality and sustainability of the balance sheets of the banks in the Asia Pacific, Middle East, and Africa regions.” Banks are rated on a scale of 0-5 and ranked based on the following performance indicators: scale, balance sheet growth, risk profile, profitability, asset quality, and liquidity.

The Asian Banker underscored BDO’s healthy balance sheet and profit as well as its low non-performing loan (NPL) ratio and high loan loss reserves to gross NPLs ratio.

BDO recently reported growth in third quarter earnings at P32.1 billion from the previous level of P21.5 billion in the same period last year. The bank attributes its net income to the expansion of its recurring core revenues, complemented by the sustained increase in fee incomes and life insurance premiums. It translates to a Return on Common Equity (ROCE) of 12.5%, compared to 9.5% in 9M18.

While its nine-month net income brings it closer to its full-year earnings guidance of P38.5 billion, the bank remains steadfast in capitalizing on the country’s solid economic pace and growth opportunities in underserved and emerging markets, leveraging its focused growth strategy, strong business franchise, solid balance sheet, and extensive geographic reach.

Strongest Bank in the Philippines. BDO is named by The Asian Banker as 2019’s Strongest Bank by Balance Sheet in the Philippines for the second straight year. BDO’s Walter Wassmer (2nd from left), senior executive vice president and head of institutional banking group, received the award from The Asian Banker’s (from left to right) Foo Boon Ping, managing director; Faith Masekesa, senior research; and Wilson Chia, international resource director on October 10 at the Shangri-La at the Fort.

The Asian Banker evaluates strength “based on a belief that a strong bank demonstrates long-term profitability from its core businesses.” Through its yearly Strongest Banks by Balance Sheet, the Singapore-based publication provides financial intelligence by assessing banks and financial holding companies in emerging and mature markets with a substantial amount of activity in commercial banking.

About BDO Unibank, Inc.

BDO is a full-service universal bank which provides a wide range of corporate and retail banking services. These services include traditional loan and deposit products, as well as treasury, trust and investments, investment banking, private banking, rural banking, cash management, leasing and finance, remittance, insurance, retail cash cards, credit card services, and stock brokerage services.

BDO has one of the largest distribution networks, with more than 1,300 operating branches and over 4,400 ATMs nationwide. It also has full-service branches in Hong Kong and Singapore as well as 21 overseas remittance and representative offices in Asia, Europe, North America, and the Middle East.

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 June 30, 2019. For more information, please visit www.bdo.com.ph.

BDO Unibank, Inc.
BDO Corporate Center
7899 Makati Avenue
Makati City 0726, Philippines
Tel +63(2) 8840-7000
www.bdo.com.ph

Reference:

Chesca Ortega
PR and Events Specialist
Roar Agile Communicators Corp
roar.ph chesca.roar@gmail.com

December 11, 2019
BDO earns P32.1 billion in Jan-Sept 2019

BDO Unibank, Inc. (BDO) delivered P32.1 billion in net income for the first nine months of the year compared to P21.5 billion a year-ago, largely driven by the expansion in the Bank’s recurring core revenues. The 9M19 net income translates to a Return on Common Equity (ROCE) of 12.5 per cent, compared to 9.5 per cent in 9M18.

Customer loans increased by six (6) per cent year-on-year (yoy) to P2.1 trillion, led by the sustained growth in the middle-market and consumer segments. Meanwhile, total deposits went up by three (3) per cent yoy to P2.4 trillion, with low-cost Current Account/Savings Account (CASA) deposits increasing by six (6) per cent and accounting for 72 per cent of total deposits.

Net Interest Income (NII) increased yoy to P88.5 billion, with net interest margins (NIMs) further improving in 3Q19.

Non-interest Income went up yoy to P44.1 billion, led by fee-based income and insurance premiums which accelerated by 14 per cent and 23 per cent to P25.4 billion and P10.8 billion, respectively. Trading and foreign exchange gains in 3Q19 amounted to P690 million from P1.0 billion year-ago. However, the trading and forex gains of P4.3 billion for the nine-month period reflects a normalized level compared to 2018, where a more volatile environment prevailed. As such, gross operating income rose to P132.6 billion.

Operating expenses rose by 20 per cent to P85.8 billion given the Bank’s continuing expansion as well as increased volume-related expenses (e.g., taxes and licenses and policy reserves at BDO Life were up by an aggregate 42 per cent yoy). Excluding volume-related expenses, operating expenses would have risen by 14 per cent.

Provisions amounted to P4.2 billion as the Bank maintained its conservative credit and provisioning policies. Gross non-performing loan (NPL) ratio was steady at 1.2 per cent, while NPL cover remained high at 168.2 per cent.

The Bank’s capital base increased to P364.0 billion, with Common Equity Tier 1 (CET1) and Capital Adequacy Ratio (CAR) improving to 13.1 per cent and 14.6 per cent, and remaining comfortably above the current regulatory minimum under the Basel III framework.

With its focused growth strategy, strong business franchise, solid balance sheet and extensive geographic reach, the Bank remains solidly positioned to capitalize on the country’s solid economic pace and growth opportunities in underserved and emerging markets.

About BDO

BDO is a full-service universal bank which provides a wide range of corporate and retail banking services. These services include traditional loan and deposit products, as well as treasury, trust and investments, investment banking, private banking, rural banking, cash management, leasing and finance, remittance, insurance, retail cash cards, credit card services and stock brokerage services.

BDO has one of the largest distribution networks, with more than 1,300 operating branches and over 4,400 ATMs nationwide. It also has full-service branches in Hong Kong and Singapore as well as 21 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.

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 June 30, 2019. For more information, please visit www.bdo.com.ph.

Nancy May Francisco-Lugatiman

PR Manager ROAR Agile Communicators Corporationm: +639177920519w: roar.ph e: n ancy@roar.ph

October 28, 2019