For the year 2019, The Asian Banker named BDO Unibank as the Strongest Bank by Balance Sheet in the Philippines. The recognition was accorded for 2 straight years since 2018. 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.”
The organization, which provides information for the financial services industry in the form of publications, 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. 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.
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.
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.