BDO profit declines on smaller trading, foreign exchange gains

The Philippines' second-largest bank, Banco De Oro Unibank Inc (BDO), said its profits declined in the first quarter of 2008 due to reduced trading and foreign-exchange gains. The bank said its net income fell by 24 percent to P1.34 billion in the first three months of 2008 compared with P1.77 billion in the same period in 2007. The bank attributed the double-digit drop in its noninterest income, which overshadowed a modest increase in its net interest income, to "a difficult operating environment." BDO said its net interest income increased by 6 percent to P5.4 billion due to a better loan and deposit mix. Growth in low-cost deposits expanded the bank's total deposits by 4 percent to P463.8 billion since the start of the year. BDO missed its profit growth target of 7 percent in 2007 due to higher expenses related to its consolidation with EPCIB

in Manila Times by Maricel E. Burgonio
May 9, 2008
Read the article