2010 BDO Annual Report

We find ways
Review of 2010 Operations
Operational Highlights
Making Solid Progress
2010 is a year of remarkable
accomplishments for Banco De Oro
Unibank, Inc. It became the first
Philippine bank to breach the P1-trillion
mark in terms of assets, growing 16
percent from 2009’s level of P862 billion.
10
Along side this feat is the 46-percent
jump in net income to P8.8 billion
from the P6-billion it earned in 2009.
This surpassed the P8.1-billion profit
guidance originally set for 2010. The
profit growth was a result of a more
diversified and sustainable earnings
stream from BDO’s core lending,
deposit-taking and service businesses.
HIGHLIGHTS:
Total Deposits
P694.7B
P782.6B
2009 2010
percent to P541.5 billion.
to P34.2 billion.
amounted to P10.4 billion.
billion and raised non-performing
loan (NPL) coverage to 92 percent.
14 percent.
improved to 11.7 percent.
INTERMEDIATION ACTIVITIES
Business Lending. The Bank managed
to grow its business lending portfolio
by 12 percent in 2010 boosted by
the strong demand from clients in
the SME (small medium enterprise)
and commercial banking segments.
With the high growth trend, BDO is
encouraged to expand opportunities
from these markets. Loans from large
corporate clients, meanwhile, continued
to post modest growth rates, coming
mainly from project finance type of
transactions.
The commercial banking and SME
segments are still seen to pursue the
growth path in 2011 as shown by their
Business Lending
P432B
P387B
2009 2010
continued expansion efforts. As such,
the Bank anticipates faster loan growth
rates. There is also the expected demand
from large conglomerates specially
with the implementation of big-ticket
infrastructure projects under the Public
Private Partnership (PPP) initiated by the
Aquino government.
BDO will likewise remain focused on
growing the traditional working capital
and trade loans for the middle market
and watch out for potential project
finance and capital expenditure loans
from large corporations.
Another major contributor is the
Bank’s wholly owned unit, BDO Leasing
and Finance, Inc. (BDOLF). In 2010,
it posted a 28-percent growth in loan
portfolio to P15 billion on heightened
focus on corporate accounts. BDOLF
undertook aggressive marketing
initiatives to obtain business from
corporate and commercial banking
clients of BDO.